USEC Cites Progress on Extending American Centrifuge Project Work
Working to Extend Credit Facility Deadline
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.
USEC
Media: Paul Jacobson, 301-564-3399
Investors:
Steven Wingfield, 301-564-3354
