USEC reaches agreement with noteholder group for restructuring

USEC Inc. (USU) has reached an agreement with a majority of the  holders of its senior convertible notes on the terms of a financial  restructuring plan that will strengthen the company’s balance sheet,  enhance its ability to sponsor the American Centrifuge project and  improve its long-term business opportunities.

Under the terms of the  agreement, the company will replace approximately $530 million in  convertible notes that are scheduled to mature in October 2014 with new  debt and equity.

Throughout the restructuring process, USEC expects to continue its  operations and to meet its obligations to its stakeholders, including  suppliers, partners, customers and employees. The company also  anticipates the continuation of research, development and demonstration  activities for the American Centrifuge technology, as well as the  transition activities at the Paducah Gaseous Diffusion Plant by United  States Enrichment Corporation, which is the primary operating subsidiary  of USEC Inc.

Discussions continue with the Babcock & Wilcox Investment Company (B&W)  and Toshiba Corporation regarding agreement to restructure their  preferred convertible equity investment.

The noteholders and USEC have  made a proposal regarding restructuring the Toshiba and B&W investment  and the parties are in discussions on those terms and documentation  which must be completed prior to implementing the financial  restructuring plan. As strategic investors, Toshiba and B&W remain  supportive on deployment of the American Centrifuge Plant, USEC said.