USEC looking at replacing bank facility, sees extra terms, covenants, security

New York, Feb. 1 - USEC Inc. said it is evaluating options for replacing its credit facility because a decline in retained earnings raises the possibility of problems with the minimum stockholders' equity covenant on its present bank line.

The Bethesda, Md. supplier of enriched uranium warned in a filing with the Securities and Exchange Commission that a new credit facility would likely include additional terms and covenants and be secured by some of the company's assets.

Currently, USEC has a $150 million revolving credit facility that expires in July 2003. As of Dec. 31, 2001 the company had not short-term borrowings and $138.5 million of availability, after reductions for outstanding letters of credit, according to the SEC filing. It said it was in compliance with financial covenants as of that date.

But, the company, said: "Because of the decline in retained earnings in the six months ended December 31, 2001 and the resulting impact on the minimum stockholders' equity covenant under the bank credit facility, USEC is evaluating its options to replace the facility."

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