Cameco Announces $400 Million Debenture Offering by Private Placement and Intention to Redeem Series E Debentures

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SASKATOON, Saskatchewan, Oct. 16, 2020 (GLOBE NEWSWIRE) -- Cameco (TSX: CCO; NYSE: CCJ) announced today that it has priced a private placement of senior unsecured debentures (the “Offering”) consisting of $400 million principal amount of 2.95% Senior Unsecured Debentures, Series H maturing on October 21, 2027 (the “Series H Debentures”). The closing of the Offering is expected to take place on October 21, 2020.

Cameco intends to use the net proceeds of the Offering to redeem, upon closing of the Offering, all of its outstanding 3.75% Senior Unsecured Debentures, Series E due November 14, 2022 (the “Series E Debentures”).

“Consistent with the conservative financial management we have demonstrated, like many other companies, we took advantage of currently favourable debt capital markets to reset the maturity profile of our long-term debt,” said Grant Isaac, Cameco’s Senior Vice-President and CFO. “With the $500 million reduction in our long-term debt in 2019 and a strong cash position, we have an enviable balance sheet. 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.”

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 Cameco. The Series H Debentures are being offered on a private placement basis in Canada in reliance upon exemptions from the prospectus requirements under applicable securities legislation. The Series H Debentures are being offered on an agency basis by a syndicate of agents led by RBC Capital Markets, TD Securities Inc. and CIBC Capital Markets.