Arcadium shareholders approve sale to Rio Tinto
Shares of Arcadium Lithium rose about 7% in extended trading after the company said that about 98% of its shareholders had voted in favor of the sale.
Canadian uranium miner Cameco (TSX: CCO; NYSE: CCJ) said it intends to take advantage of currently favorable debt capital markets to reset the maturity profile of its long-term debt.
The company has priced a private placement of senior unsecured debentures consisting of $400 million principal amount of 2.95% senior unsecured debentures, Series H, maturing on October 21, 2027.
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 in a media release.
“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.
