Energy Fuels announces proposed $550M offering of convertible senior notes

Energy Fuels (UUUU) announced its intent to offer $550M aggregate principal amount of Convertible Senior Notes due 2031 in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. Energy Fuels also intends to grant 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 $82.5M aggregate principal amount of notes. Energy Fuels expects to use the net proceeds from the convertible notes offering, if consummated, (i) to pay the cost of the capped call transactions and (ii) to provide Energy Fuels with additional financial flexibility and enhanced options with respect to any or all of the following: (1) funding development expenditures, including project financing, required for the company’s planned Phase 2 rare earth separations circuit expansion at the White Mesa Mill; (2) 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 (3) general corporate needs, ongoing operational needs and working capital requirements. If the initial purchasers exercise their option to purchase additional notes, Energy Fuels expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional capped call transactions with the option counterparties and the remaining net proceeds for general corporate purposes. Shares of Energy Fuels are down 8% in premarket trading.