Energy Fuels (UUUU) Falls 7% on $550-Million Notes Issuance

We recently published 11 Stocks Failing to Keep up With The Market. Energy Fuels Inc. (NYSEAmerican:UUUU) is one of the top performers on Tuesday.

Energy Fuels extended its losing streak to a third straight day on Tuesday, shedding 7.08 percent to close at $15.35 apiece, as investor sentiment was dampened by plans to raise $550 million from the issuance of convertible senior notes that could result in shares dilution.

In a statement, Energy Fuels Inc. (NYSEAmerican:UUUU) said that the notes will have a tenor of six years and mature in 2031.

In line with the offer, the company gave its initial purchasers a 13-day option to purchase an additional $82.5 million worth of notes, beginning from the date of the offer.

Energy Fuels Inc. (NYSEAmerican:UUUU) said the notes will accrue interest payable semiannually in arrears and are convertible to cash or shares, or a combination of both, at the company’s election.

The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the convertible notes offering.

Energy Fuels Inc. (NYSEAmerican:UUUU) said it plans to use the proceeds to fund the expansion of the second phase of the White Mesa Mill, the Donald heavy mineral sands and rare earth project in Australia, and other general corporate purposes, among others.

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Disclosure: None. This article is originally published at Insider Monkey.