What market conditions or investor demand are expected to influence the pricing and success of the offering?

Centrus’s $650 million convertible‑note offering will be priced largely on the prevailing credit‑ market environment and the appetite of institutional investors for high‑yield, convertible securities. Interest‑rate and spread dynamics are the primary drivers: with 10‑year Treasury yields hovering around 4–4.5 % in August 2025, the cost of debt for a mid‑credit rating issuer like Centrus (currently rated B‑ to B+ by S&P) will be a function of the spread premium investors demand for both credit risk and the conversion feature. A tightening of Treasury yields or a steepening of high‑yield spreads (e.g., B‑ rated corporate bonds trading at 800–1,200 bps over Treasuries) would compress the convertible’s coupon and increase the conversion premium, making the notes less attractive unless the conversion price is adjusted to be more equity‑like. Conversely, a flattening of spreads and a modest decline in Treasury yields would allow Centrus to price the notes at a lower coupon, improving the deal’s economics.

Investor demand for “yield‑plus‑upside” exposure in the nuclear‑fuel sector will also be pivotal. Recent bullishness in uranium prices—up 30 % YoY—has revived interest in companies with long‑term supply contracts, and Centrus’s position as a major LEU producer makes its equity an attractive hedge. Institutional investors (e.g., pension funds, insurance carriers, and specialty credit funds) that are looking to diversify away from traditional high‑yield exposure are likely to gravitate toward convertible notes that offer both a fixed‑income floor and upside if LEU prices continue to rally. A strong order‑book for the offering, evidenced by “soft‑cover” commitments from a diversified pool of institutional investors, would allow Centrus to price the notes at a lower conversion premium and tighter coupon, increasing the likelihood of a successful placement. In practice, if the market sees a sustained bullish outlook for uranium and a stable, low‑volatility credit environment, the offering should price competitively, while any spike in rates or a drop in nuclear‑fuel demand could force a higher coupon or wider conversion discount, potentially dampening investor appetite.