Nuclear firm Centrus falls on $500 mln stock-and-warrants offering
LEU•Bookrunners and analyst view
Guggenheim Securities and Barclays are bookrunners.
Through Wednesday, LEU stock was down 25% year to date.
Eleven of 18 analysts rate the stock "strong buy" or "buy," seven rate it "hold"; the median price target is $240, according to LSEG.
Warrants and use of proceeds
The offering includes four series of accompanying warrants to purchase up to about 6.99 million shares. The warrants are exercisable at 125%, 150%, 175% and 200% above the stock's last close of $181.49, according to the prospectus.
Bethesda, Maryland-based LEU has about 19.2 million shares outstanding.
It intends to use net offering proceeds for general working capital and corporate purposes, including investment in technology development and deployment, repayment or repurchase of debt, capex, potential acquisitions, among other purposes.
Centrus shares fall after follow-on pricing
Nuclear fuel supplier Centrus Energy's LEU.N shares were down 3% at $176 in premarket trading on Thursday after a $500 million follow-on was priced.
The low-enriched uranium producer late Wednesday announced pricing of 500,000 shares and pre-funded warrants to buy about 2 million shares at $199.64.
