USEC must restructure convertible notes before Oct. 1, 2014 maturity

By Caroline Salls

Pittsburgh, Nov. 5 - USEC Inc. will need to restructure its $530 million of convertible senior notes before the Oct. 1, 2014 maturity date and is in talks with its advisers and some stakeholders on alternatives for a possible restructuring of its balance sheet, according to a 10-Q filed Tuesday with the Securities and Exchange Commission.

The company said it is exploring its balance sheet restructuring alternatives in light of a significant transition of its business and uncertainties and challenges facing USEC, as well as in order to address the convertible notes maturity.

A balance sheet restructuring could also improve the company's credit profile and its ability to successfully finance and deploy its American Centrifuge project, the 10-Q said.

Although the economics of the American Centrifuge project are severely challenged under current enrichment market conditions, the company said it believes that the deployment of the project represents its clearest path to a long-term, direct source of domestic enrichment production and the long-term viability of its low enriched uranium business.

USEC said it expects any restructuring to result in significant changes to its capital structure and adjustments to its balance sheet, including the creation of a new entity for accounting purposes, which would have a significant impact on its financial statements and the going concern assumption on which they were prepared.

USEC is a Bethesda, Md.-based supplier of nuclear fuel and advanced technology services.

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