Energy Fuels Inc. has successfully closed its upsized offering of convertible senior notes, raising a total of $700 million. This includes a full exercise of the initial purchasers’ option to buy an additional $100 million of notes.
Goldman Sachs was the sole book-running manager for the offering, supported by Cantor, Morgan Stanley, BMO Capital Markets and Canaccord Genuity. CEO Mark Chalmers highlighted the financing as a significant milestone, taking advantage of market conditions. He noted that the attractive 0.75% annual coupon makes it favorable compared to traditional debt financing.
The proceeds will enhance the Lakewood company’s balance sheet and support its initiatives in rare earth production, particularly at its White Mesa Mill and in Australia. Chalmers also stated that the offering reflects strong investor confidence in both the company’s rare earth strategies and its leading uranium production.
Key terms of the offering include a cash interest coupon of 0.75% per year, convertible at a price of approximately $20.34 per share. There are provisions for Energy Fuels to redeem the notes under certain conditions. The notes will mature on November 1, 2031.
