Progress Update: Reducing Long-Term Debt

Last week, Centrus took another step forward in its larger effort to reduce, restructure, and retire its long-term debt. Since these actions have unfolded in several phases, the Company is providing a more comprehensive update on what the effort has achieved.

At the end of 2015, the Company’s debt stood at approximately $247.6 million; the 8 percent interest would amount to roughly $20 million per year. The notes were set to mature in 2019 (2019 Notes.)

Over the past three years, however, the Company has taken a series of steps to put itself in a much stronger position. In fact, Centrus has reduced the aggregate principal amount by nearly 60 percent, while extending the maturity for most of the remaining debt until 2027.

Below is a brief summary of actions taken to date:

1. In June 2016, Centrus was able to repurchase almost 10 percent of the 2019 Notes at a more than 60 percent discount from their principal amount. Centrus paid $9.8 million in cash for notes with an aggregate principal balance of $26.1 million and $0.5 million in accrued interest. Net of commissions and unamortized deferred financing costs, paying off this debt early produced a gain of $16.7 million.
2. In February 2017, Centrus successfully completed an exchange offer for 87.4 percent of its outstanding 2019 Notes. The Company repurchased $204.9 million in outstanding notes in exchange for $27.6 million in cash, preferred stock with an aggregate liquidation preference of $104.6 million, and $74.3 million in new notes that are due in 2027.
3. On December 6, 2018, Centrus completed a transaction to extinguish a portion of the remaining 2019 Notes. The Company paid $5.1 million in cash and 398,638 shares of common stock in exchange for 2019 Notes with a principal amount of $6.3 million. These notes would have continued to accumulate $0.4 million in additional interest through September 30, 2019.

Long Term Debt (in millions)