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Babcock & Wilcox Says It Made $37.5 Mln Investment In USEC - Quick Facts

(RTTNews) - Thursday, the Babcock & Wilcox Co. (BWC), through its affiliate Babcock & Wilcox Investment Co., said that it has made a $37.5 million investment in USEC Inc. (USU). This is the first phase of its previously announced definitive agreement to make a $100 million strategic investment in USEC. In connection with the investment, Michael Taff, senior vice president and chief financial officer of B&W, has been elected to USEC's Board of Directors.

In May 2010, USEC announced that Toshiba Corp. and Babcock & Wilcox Investment Co. signed a definitive agreement to make a strategic investment totaling $200 million in USEC over three phases.

The investment also initiates the formation of American Centrifuge Manufacturing or ACM, a joint venture between B&W and USEC. ACM will provide integrated manufacturing and assembly of centrifuge machines for USEC's American Centrifuge Plant.

The second phase of the strategic investment, which will be $25 million, will occur when, among other things, USEC secures a conditional commitment on a $2 billion loan guarantee from the U.S. Department of Energy. The balance of the investment, which will be $37.5 million, is conditioned, among other things, on closing the loan under DOE's loan guarantee program for the American Centrifuge Plant and USEC shareholder approval of certain matters.

The American Centrifuge Project is based on the use of highly efficient centrifuges to produce uranium fuel utilizing skilled workers primarily in Tennessee and Ohio.

BWC is currently trading at $22.86, up $0.04 or 0.18%, on a volume of 154 thousand shares on the NYSE.

USU is currently trading at $4.95, up $0.05 or 1.02%, on a volume of 611 thousand shares on the NYSE.