Energy Fuels might seek to extend convertibles, lower conversion price

By Angela McDaniels

Tacoma, Wash., June 17 – Energy Fuels Inc. is considering seeking amendments to the terms of its C$22 million of floating-rate convertible subordinated debentures due June 30, 2017, according to a company news release.

The company has begun advance notice procedures in order to be able to call an Aug. 4 meeting of debenture holders should it decide to seek the amendments.

The amendments under consideration include an extension of the maturity of the debentures, a reduction in the current conversion price of C$15.00 to a premium “that better reflects current market conditions,” the addition of certain redemption rights and the addition of certain provisions required under the U.S. Trust Indenture Act, according to the news release.

The company said it has several alternatives available to it to address the upcoming maturity of the debentures, including retiring the debentures with shares or cash under the existing terms of the debentures, refinancing the debentures with another financing vehicle or amending the terms of the debentures to extend the maturity date.

The company also previously announced that it has in place a normal-course issuer bid that allows it to purchase for cancellation up to C$2.2 million of the debentures through open-market purchases at prevailing prices on the Toronto Stock Exchange. The issuer bid will remain in effect until Oct. 1. So far, the company has not repurchased any debentures under the issuer bid.

If the company decides to seek amendments to the debentures, it expects to mail a proxy circular to the debenture holders by July 11.

In order for amendments to be approved, the votes of holders of two-thirds of the principal amount of debentures represented in person or by proxy at the meeting must be cast in favor of the amendments. A quorum for the meeting will be 25% of the principal amount of debentures.

The company expects to announce a decision on whether to pursue the amendments in early July. The company said it plans to obtain input from some holders of the debentures before making its decision.

Energy Fuels is a uranium miner based in Lakewood, Colo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.