Definity Financial is preparing a debt sale totalling C$1bn ($723m) ahead of its acquisition of Travelers Canada, reported Bloomberg, citing sources. The debt offering will be structured in two tranches of five and ten years. According to the unnamed sources, the five-year portion could be priced at a margin of 0.95–1.05 percentage points above the benchmark government rates. The price for the ten-year part is estimated to be in the 1.15–1.25 percentage point band. No official comment has been made by ...

Core Viewpoint - Centrus Energy is raising $650 million through convertible senior notes despite having sufficient cash flow and a healthy balance sheet, raising questions about the rationale behind this decision [1][5]. Group 1: Financial Details - Centrus Energy plans to issue $650 million worth of convertible senior notes due in 2032 to fund the development of high-assay, low-enriched uranium (HALEU) for advanced reactors [2]. - If there is enough interest from banks, the offering could be increased by $100 million, totaling $750 million [3]. - The interest rate for the notes has not been disclosed, but such notes typically pay below market rates, which could benefit the company [4]. Group 2: Company Performance - Centrus Energy has generated significant free cash flow of $107 million over the last 12 months, indicating no immediate cash need [5]. - The company currently holds more cash than debt, suggesting a strong financial position [5]. Group 3: Market Reaction - Following the announcement, Centrus Energy's shares fell by 9.9%, indicating investor skepticism regarding the need for the cash raise [1]. - Despite the market reaction, there is speculation that the company may have strategic plans for its HALEU business, which could justify the capital raise [6].