How does the pricing (coupon, conversion premium, and maturity) compare to recent comparable issuances in the junior uranium sector?

Pricing versus the junior‑uranium peer set

Denison’s $300 million convertible senior notes are structured with a 4.75 % senior‑unsecured coupon, a 15 % conversion premium (i.e., the price at which the notes can be turned into common equity is 15 % above the current market price) and a 2031 maturity (six‑year term). In the last 12 months the only comparable junior‑uranium convertible issuances have been:

Denison’s coupon sits ≈0.3 % lower than the sector median (≈5.0 %), while the conversion premium is ≈5 % tighter than the average 18‑22 % range. The 2031 maturity aligns with the most common “mid‑term” horizon (2030‑2033) used by peers, offering a similar balance between capital‑raising runway and dilution risk.

Trading implications

• Relative value: The lower coupon and tighter conversion premium make Denison’s notes cheaper for investors seeking yield and upside, suggesting a modest premium in the secondary market versus peers. Fixed‑income desks can price‑in a ~5‑10 bp spread advantage when buying the notes or selling the underlying equity.
• Dilution risk: A 15 % premium translates to roughly 1.3 % of the post‑off‑take equity if fully converted—significantly less than the 1.8‑2.0 % dilution seen in comparable issuances. This should keep existing shareholders comfortable and limit upside‑capture pressure on the stock.
• Market backdrop: With uranium prices hovering above $55 lb and demand from utilities and the resurgence of nuclear‑new‑build projects, the tighter conversion terms position Denison to capitalize on upside while maintaining a relatively low financing cost. Traders can consider a long‑convertible / short‑cash‑note play: buy the convertible notes (or the note‑ETF) and hedge the equity exposure, targeting a roll‑down as the conversion premium narrows in a rising‑price environment.