06:24 AM EDT, 10/01/2025 (MT Newswires) -- Energy Fuels (UUUU) , a U.S. producer of uranium, rare earths, and critical minerals, was at last look down 0.5% after it announced earlier Wednesday the pricing of US$600 million aggregate principal amount of 0.75% Convertible Senior Notes due 2031 in a private placement.
The size of the offering was increased from the previously announced $550.0 million aggregate principal amount of notes.
In addition, Energy Fuels (UUUU) granted the initial purchasers of the notes an option to purchase, during a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $100 million aggregate principal amount of notes. The offering is expected to close October 3, 2025, subject to the satisfaction of customary closing conditions.
A statement noted the notes will be general senior unsecured obligations of Energy Fuels (UUUU) and will accrue interest payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2026, at a rate of 0.75% per year. The Notes will mature on November 1, 2031, unless earlier converted, redeemed or repurchased.
Energy Fuels (UUUU) estimates that the net proceeds from the offering will be approximately $578.1 million (or approximately $674.6 million if the initial purchasers exercise their option to purchase additional notes in full) after deducting the initial purchasers' discounts and commissions and estimated offering expenses payable by Energy Fuels (UUUU).
The company expects to use the net proceeds from the offering to pay the approximately $45.9 million cost of the capped call transactions (or approximately $53.55 million if the initial purchasers exercise their option to purchase additional notes in full); and to provide Energy Fuels (UUUU) with additional financial flexibility and enhanced options with respect to any or all of the following: funding development expenditures, including project financing, required for the company's planned Phase 2 rare earth separations circuit expansion at the White Mesa Mill; funding development and earn-in expenditures, including project financing, required for the company's Donald heavy mineral sands and rare earth project in Australia; and general corporate needs, ongoing operational needs and working capital requirements.
If the initial purchasers exercise their option to purchase additional notes, Energy Fuels (UUUU) expects to use a portion of net proceeds from the sale of the additional notes to enter into added capped call transactions with the option counterparties and the remaining net proceeds for other purposes.
MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.
Print
