Shared equally between Toshiba and B&W, the investment will enable USEC to deploy American Centrifuge Plant and create new business opportunities throughout the nuclear fuel cycle.
The first phase is expected to close in the third quarter of 2010. For their investment, the companies would receive convertible preferred stock and warrants to purchase shares of common stock, which would be exercisable in the future.
All three companies have agreed to work together on additional strategic business opportunities. Under the arrangement, USEC could provide uranium for bundling with Toshiba’s nuclear power plant proposals.
USEC and B&W also plan to complete a joint venture to manufacture USEC’s commercial AC100 centrifuge machines for American Centrifuge Plant for which USEC is operating centrifuge machines in a commercial plant configuration, collecting data and experience for transitioning into full commercial operations.
The initial phase investment would help USEC continue to advance deployment of the American Centrifuge Plant during 2010.
