enCore Energy plunges after offering $75M of convertible senior notes

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enCore Energy (NASDAQ:EU [https://seekingalpha.com/symbol/EU]) -6.2% post-market Tuesday after saying it plans to launch a private offering [https://seekingalpha.com/pr/20205817-encore-energy-corp-announces-proposed-offering-of-75-million-of-convertible-senior-notes-due] of $75M of convertible senior unsecured notes due 2030, with an underwriters option to purchase up to an additional $11.25M aggregate principal amount.

The interest rate, initial conversion rate and other terms of the convertible notes will be determined at the time of the pricing of the offering.

enCore (NASDAQ:EU [https://seekingalpha.com/symbol/EU]) said it plans to use part of the net proceeds from the offering to pay the cost of entering into capped call transactions in connection with the convertible notes, with the remainder of the net proceeds to repay amounts outstanding under its loan agreement and for general corporate purposes.

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* Financial information for enCore Energy [https://seekingalpha.com/symbol/EU:CA/income-statement]