Energy Fuels closes upsized $700 million convertible notes offering

DENVER - Energy Fuels Inc. (NYSE:UUUU) (TSX:EFR), a $335.68 million market cap company with a "GOOD" financial health score according to InvestingPro, announced Friday it has closed its previously announced offering of 0.75% Convertible Senior Notes due 2031, raising an aggregate principal amount of $700 million, which included the full exercise of the initial purchasers’ option to purchase an additional $100 million of notes.

The notes carry a 0.75% annual interest rate payable semi-annually and have a conversion price of approximately $20.34 per common share, representing a 32.5% premium to the company’s closing share price on September 30, 2025. The company maintains a notable 9.08% dividend yield and demonstrates relatively low price volatility with a beta of 0.39.

Energy Fuels also purchased capped call options for approximately $53.55 million that effectively increase the conversion price to $30.70 per share, representing a 100% premium over the September 30 closing price.

Goldman Sachs & Co. LLC served as sole book-running manager for the offering, with Cantor as lead manager and capped call coordinator. Morgan Stanley acted as a lead manager, while BMO Capital Markets and Canaccord Genuity served as co-managers.

Mark Chalmers, Energy Fuels’ CEO, said the capital raised will strengthen the company’s balance sheet and enhance its ability to accelerate rare earth initiatives, including expansion at its White Mesa Mill and the Donald Project in Australia.

The notes will mature on November 1, 2031, unless earlier converted, redeemed, or repurchased. Conversions may be settled in common shares, cash, or a combination of both, at Energy Fuels’ election.

Energy Fuels describes itself as a leading U.S.-based critical minerals company focused on uranium, rare earth elements, heavy mineral sands, vanadium, and medical isotopes. With last twelve months revenue of $52.89 million and a P/E ratio of 20.2, the company shows promising fundamentals. Discover more detailed analysis and 6 additional key insights with InvestingPro.

The information in this article is based on a company press release statement.

In other recent news, Energy Fuels Inc. has priced an upsized $600 million offering of 0.75% Convertible Senior Notes due 2031, with the offering increased from a previously announced $550 million. This financial move is expected to close on October 3, and the company has granted initial purchasers an option to buy an additional $100 million in notes. Additionally, Energy Fuels announced that its high-purity neodymium-praseodymium oxide has been qualified for use in electric vehicle motors, marking a significant milestone in their production capabilities. The company has also successfully produced its first kilogram of dysprosium oxide at its White Mesa Mill in Utah, achieving 99.9% purity. Energy Fuels plans to produce approximately two kilograms of dysprosium oxide per week until reaching about 15 kilograms. Furthermore, in a leadership transition, Ross R. Bhappu will become the company’s president effective August 4, 2025. Mark S. Chalmers will continue as CEO and director. Lastly, the company has commenced pilot-scale production of heavy rare earth element oxides, with plans to complete its first kilogram of dysprosium oxide within 30 days.

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