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Centrus Energy Corp. (NYSE American: LEU) has announced the initiation of an at-the-market (ATM) equity offering program. This strategic move enables the company to sell shares of its Class A common stock, with the potential to raise up to $1 billion over time. The program aims to enhance financial flexibility and support ongoing operations and projects.
The ATM program allows Centrus to sell its shares at prevailing market prices, which means sale prices may fluctuate. This variability enables the company to optimize its capital raising efforts while remaining responsive to market conditions.
Details of the offering program
Under the terms of the sales agreement, Centrus retains control over the specifics of share sales. This includes the number of shares sold, timing of transactions, and any limitations on daily sales volumes. Additionally, the company can set a minimum price for the shares, aligning sales with its financial objectives.
While Centrus is not obligated to sell any shares, proceeds from sales are expected to be allocated toward general corporate purposes. These may include investments in technology development, repaying existing debt, capital expenditures, and exploring potential acquisitions.
Sales agents involved
Centrus has engaged several financial institutions as sales agents to facilitate the offering process. Notable participants include Barclays, Citi, UBS Investment Bank, and Evercore ISI. These agents will use standard trading practices to ensure effective sales in accordance with regulatory requirements.
Regulatory compliance and investor information
The shares sold through this ATM program will be issued in compliance with Centrus’ Registration Statement on Form S-3ASR, filed with the Securities and Exchange Commission (SEC) on November 6. This registration automatically became effective under Rule 462(e) of the Securities Act of 1933.
Investors interested in the offering should consult the prospectus supplement filed with the registration statement for detailed information. The documents provide insights into the offering’s terms, potential risks, and Centrus’ financial health.
Company background
Centrus Energy Corp. is a significant player in the nuclear fuel sector, supplying essential components for nuclear power generation. With a focus on reliability and diversity, the company helps utility customers meet the growing demand for clean and affordable energy. Since its inception, Centrus has delivered over 1,850 reactor years of fuel, equating to more than 7 billion tons of coal in energy equivalence.
Additionally, Centrus is advancing production techniques for High-Assay, Low-Enriched Uranium, which is crucial for the future of nuclear energy. The company is also working to restore and enhance uranium enrichment capabilities within the United States, addressing energy security and environmental sustainability concerns.
Forward-looking statements and considerations
The announcement includes several forward-looking statements as defined under relevant securities regulations. These statements reflect expectations regarding future sales under the ATM program and the anticipated use of proceeds. However, they are subject to uncertainties, including market conditions and regulatory environments.
The ATM program allows Centrus to sell its shares at prevailing market prices, which means sale prices may fluctuate. This variability enables the company to optimize its capital raising efforts while remaining responsive to market conditions.0
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