USEC’s application now proceeds with a draft credit package.

USECBETHESDA – USEC Inc. announced that it had reached a significant step in the Company’s application for a $2 billion loan guarantee from the U.S. Department of Energy (DOE) for the American Centrifuge Plant. DOE’s Loan Guarantee Program Office has substantially completed the due diligence and negotiation stage of the application process and has advanced the American Centrifuge Plant application to the next phase.

USEC’s application now proceeds with a draft credit package, including the negotiated term sheet, having been submitted on parallel paths to DOE’s credit group and to the Office of Management and Budget (OMB) for review, including determination of an estimated preliminary credit subsidy cost range. The term sheet, which was negotiated between DOE’s Loan Guarantee Program Office and USEC, includes specific terms and conditions USEC must meet to close on a loan guarantee for the advanced uranium enrichment facility. Following this review and approval by DOE’s Credit Review Board, the Secretary of Energy would be positioned to issue a conditional commitment for a loan guarantee. USEC would then work with DOE to conclude final documentation and satisfy all technical, financial and other conditions to funding in order to close on financing and begin drawing funds.

“This is another important step forward for the American Centrifuge Project that moves us closer to getting a loan guarantee,” said USEC President and CEO John K. Welch.

“We worked very closely with DOE throughout the process, and I think we have negotiated terms that will enable us to achieve our goals and objectives and provide strong assurance of repayment of a loan,” said Welch. “Deployment of this innovative American technology will support thousands of U.S. manufacturing and operations jobs and will contribute to our energy security and national security at a pivotal time for our country.”

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Source: USEC Inc.
Photo: USEC Inc.