Proceeds of this offering, which is set to close on October 21, will be used to redeem all its outstanding 3.75% senior unsecured debentures, Series E due November 14, 2022.
“With the $500 million reduction in our long-term debt in 2019 and a strong cash position, we have an enviable balance sheet,” said Grant Isaac, Cameco’s senior vice-president and CFO.
“The strength of the long-term uranium market fundamentals give us growing confidence in our ability to continue to layer in the long-term contracts necessary to support the restart of our McArthur River/Key Lake operation and to solidify our role as a low-cost, safe, reliable, commercial supplier of the uranium fuel needed for zero-carbon nuclear electricity generation,” he added.
The Series H Debentures will be direct, unsecured obligations of Cameco and will rank equally and rateably with all other unsecured and unsubordinated indebtedness of the company.
Shares of Cameco jumped 2.5% on the TSX by noon EDT Monday, giving the Saskatchewan-based miner a market capitalization of approximately C$4.9 billion.
Last week, the stock was assigned a consensus “buy” recommendation from eight brokerages that are covering the company.
