USEC Inc. (NYSE: USU) and the U.S. Department of Energy (DOE) are continuing to make good progress on a cost-sharing proposal that would allow USEC to proceed with the American Centrifuge research, development and demonstration (RD&D) program.
Based on the progress made to date, and the expected near-term completion of the agreements needed to provide such cost-shared funding, USEC is working with the administrative agent and the lenders for the Company’s credit facility to extend for a short time USEC’s ability to continue with work on the project until the agreements are finalized. Currently, USEC’s credit facility severely limits corporate funding of the project if no federal cost sharing is made available by June 1.
Pending short-term resolution with the lenders and DOE, USEC expects to continue work on the RD&D program at its facilities in Ohio and Tennessee without disruption.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel and nuclear industry related services for commercial nuclear power plants.Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 – that is, statements related to future events. In this context, forward-looking statements may address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “will” and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For USEC, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include, but are not limited to: uncertainty regarding continued funding for the American Centrifuge project and the impact of decisions we may make in the near term on our business and prospects; the outcome of ongoing discussions with DOE regarding the research, development and demonstration (“RD&D”) program, including uncertainty regarding our ability in the near term to complete agreements with DOE needed to provide funding to proceed with the RD&D program; our ability to obtain all the funding needed for the completion of the RD&D program and the dependency of government funding on Congressional appropriations; restrictions in our credit facility on our spending on the American Centrifuge project after May 31, 2012 and uncertainty regarding our ability in the near term to reach agreement with lenders regarding a short-term extension of our ability to continue spending on the American Centrifuge project until agreements with DOE are finalized and the potential for us to demobilize the project if agreement is not reached; the impact of any conditions that are placed on us or on the American Centrifuge project in connection with or as a condition to the RD&D program or other funding, including a restructuring of our role and investment in the project; limitations on our ability to provide any required cost sharing under the RD&D program; the ultimate success of efforts to obtain a DOE loan guarantee for the American Centrifuge project, including the ability through the RD&D program or otherwise to address the concerns raised by DOE with respect to the financial and project execution depth of the project, and the timing and terms thereof; the potential for DOE to seek to exercise its remedies under the June 2002 DOE-USEC agreement; changes in U.S. government priorities and the availability of government funding, including loan guarantees; uncertainty regarding the continued capitalization of certain assets related to the American Centrifuge Plant and the impact of a potential impairment of these assets on our results of operations; and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q, which are available on our website www.usec.com. We do not undertake to update our forward-looking statements except as required by law.