Centrus Energy Corp (LEU)

[heczkoby]

USU shares will be canceled
This info is to make sure that some are NOT misled on this board. Most of this info is found directly in the 8k released by USEC.

1. USEC trades under the symbol USU with just under 5mm outstanding common shares.
2. USEC is emerging from bankruptcy and is CANCELLING ALL old common shares. This includes all old preferred shares and convertible debt.
3. USEC currently has $530mm in outstanding convertible debt and $200mm in outstanding preferred equity.
4. USEC is changing its name to Centrus with ticker symbol LEU.
5. USEC is issuing 9mm new common shares under the symbol LEU to current debt and equity holders. Bondholders get 79% of the new shares. Preferred holders get 16% of the new shares. Common holders of USU get 5% of the new shares which is equivalent to 450k shares total for old common.
6. USEC is also reserving up to 1mm additional shares for the management incentive plan which could create additional dilution to the 9mm new outstanding shares of LEU upon emergence.
7. LEU will have authorized 100mm common shares and 20mm preferred shares, but only 10mm will be reserved or outstanding. Likely, only 9mm of the 10mm will be outstanding to start.
8. Convertible note holders are getting $200mm in new debt and preferred holders are getting $40mm in new debt for a total of $240mm in new debt. This reduces total debt from $530mm to $240mm and eliminates all $200mm of preferred equity.
9. USU had cash at end of second quarter of $123mm. With 9mm new shares outstanding, this is over $13.50 per share IN CASH!
10. USU management expects to have $150mm in cash at year end. Could not find supporting documentation. This would be over $16.50 per share in cash.
11, With PPS of $3.18, current market cap is $15.6mm. If new common owns 5% of new company, emerging market cap of LEU would be $312mm. LEU share price would be $34.67 per share. ($34.67 x 9mm shares = $312mm market cap x 5% = $15.6mm/4.97mm shares = $3.18)