By Evan Weinberger
New York, Sept. 25 - USEC Inc. priced an upsized $500 million in 3% convertible senior notes due Oct. 1, 2014 with an initial conversion premium of 22.5% Monday after the market close. The deal, originally announced at $450 million, came in at the rich end of talk. The convertibles were talked at an initial conversion premium of 17.5% to 22.5% and a 3% coupon.
Goldman Sachs & Co. and Wachovia Securities are joint bookrunners of the registered transaction. There is a $75 million over-allotment option, upsized from an originally announced $67.5 million. The convertibles priced at the same time as an offering of 20 million shares of USEC common stock at $9.76 per share.
The convertibles have a conversion price of $11.96 and a conversion ratio of 83.64.
The convertibles have a contingent conversion subject to a 120% hurdle. There is a put option beginning Aug. 1, 2014.
The convertibles have change-of-control protection, fundamental change protection and a make-whole agreement. There are no puts.
USEC is a Bethesda, Md.-based supplier of low-enriched uranium for commercial nuclear energy plants. The company plans to use the proceeds for the development and deployment of the American Centrifuge project, which is developing new ways to produce energy in nuclear power plants, and general corporate purposes.
Issuer: USEC Inc.
Issue: Convertible senior notes
Amount: $500 million
Greenshoe: $75 million
Maturity: Oct. 1, 2014
Coupon: 3%
Price: Par
Yield: 3%
Conversion premium: 22.5%
Conversion price: $11.96
Conversion ratio: 83.64
| Call: | Non-callable
|
| Put: | No
|
| Contingent conversion: | Subject to 120% hurdle
|
| Bookrunners: | Goldman Sachs & Co., Wachovia Securities
|
| Pricing date: | Sept. 24, after close
|
| Settlement date: | Sept. 28
|
| Distribution: | Registered
|
| Talk: | $450 million offering, $67.5 million greenshoe, 17.5%-22.5% initial conversion premium
|
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