Energy Fuels Inc. has priced an upsized private offering of $600 million in convertible senior notes due 2031. The offering, initially announced at $550 million, was increased due to investor demand and is expected to close on Oct. 3, pending customary conditions.
The notes will carry an annual interest rate of 0.75%, payable semiannually, and mature on Nov. 1, 2031. Investors have the option to convert the notes into cash, common shares, or a combination of both, at Energy Fuels’ discretion. The initial conversion rate is 49.1672 shares per $1,000, equivalent to a conversion price of approximately $20.34 per share — a 32.5% premium over the company’s last reported NYSE American trading price on Sept. 30.
The company has granted initial purchasers a 13-day option to buy up to an additional $100 million in notes. If fully exercised, total gross proceeds could reach $700 million.
Energy Fuels expects to net approximately $578.1 million from the sale, or $674.6 million if the full option is exercised. Proceeds will be used to fund capped call transactions aimed at minimizing shareholder dilution, and to support development of its rare earth separation facilities at the White Mesa Mill in Utah and the Donald project in Australia, along with other general corporate purposes.
The offering was made under Rule 144A of the Securities Act and is limited to qualified institutional buyers. The notes and any related shares are not registered under U.S. or Canadian securities laws and may not be publicly offered.
Energy Fuels is a Lakewood-based producer of uranium, rare earth elements and critical minerals.