On March 13, 2012, USEC extended its credit facility with a group of lenders. JPMorgan Chase Bank serves as administrative and collateral agent for the facility that expires on May 31, 2013. The amended facility of up to $235.0 million includes a revolving credit facility of up to $150 million (including up to $75 million in letters of credit) and a term loan of $85 million. This replaces the credit facility that included a term loan of $85 million that expires May 31, 2012. Additional details regarding the credit facility can be found in the Form 8-K Current Report filed March 13, 2012.

Transition of Contract Services Segment

Historically, the majority of revenues from the contract services segment resulted from work performed under contract with DOE to maintain and prepare the former Portsmouth GDP for decontamination and decommissioning (D&D). On September 30, 2011, contracts for maintaining the Portsmouth facilities and performing services for DOE expired, and USEC completed the transition of facilities to a new DOE contractor responsible for the D&D of the Portsmouth site. Consequently, USEC ceased providing government contract services at Portsmouth on September 30, 2011. The Company will continue to provide limited services to DOE and its contractors at the Paducah site and at the Portsmouth site related to facilities we continue to lease for the ACP. Revenue from the contract services segment, however, will decrease compared to prior periods and will be comprised primarily of revenue generated by NAC.

NAC provides nuclear energy services and technologies, specializing in design, fabrication and implementation of spent nuclear fuel technologies, including the high capacity MAGNASTOR system. NAC also provides consulting services and nuclear materials transportation.

2012 Outlook

USEC will make a number of decisions during 2012 regarding its business that will significantly affect financial results for the year, and future years. For example, the decision regarding when to cease enrichment at the Paducah plant will affect cost of production and ultimately cost of sales. We are also working with DOE and Congress regarding funding for the RD&D program. USEC has entered into an agreement with DOE that enables us to spend up to $44 million under the RD&D program, which is expected to fund program activities through March 31, 2012. As a consequence, the amount of advanced technology expense beyond the first quarter is uncertain. Given this uncertainty in two significant areas of business, USEC is providing limited guidance for 2012 at this time.

If you liked this article you might like

USEC (USU) Stock Hits One-Year Low Prior to Emergence From Chapter 11

Today's Weak On High Volume Stock: USEC (USU)

Why USEC (USU) Stock Is Soaring Today

5 Stocks Under $10 Set to Soar

Why USEC (USU) Stock Is Surging Today