Centrus Energy Shares Plummet 13.77% as $650M Convertible Bond Offering Sparks Dilution Fears Trading Volume Surges 317% to Rank 96th in Market Activity

Centrus Energy (LEU) fell 13.77% on August 13, with a trading volume of $0.97 billion, a 317.99% increase from the previous day, ranking 96th in market activity. The decline followed the company’s announcement of a $650 million convertible senior notes offering, potentially expanding to $750 million if underwriters show strong interest. The proceeds aim to fund the development of high-assay low-enriched uranium (HALEU) for advanced reactors.

The move has raised concerns over potential share dilution, as the convertible notes could be exchanged into equity. Despite generating $107 million in free cash flow over the past 12 months and holding more cash than debt on its balance sheet, Centrus’s decision to raise capital remains unclear. Analysts suggest the offering could signal strategic intent to accelerate HALEU production, though investors are reacting cautiously to the perceived risk of equity dilution.

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