EnergySolutions Sets IPO Terms

NEW YORK (AP) – Nuclear services provider EnergySolutions Inc. said Wednesday it plans an initial public offering of 30 million shares of common stock, according to a filing with the Securities and Exchange Commission.

According to the filing, the shares will be sold in the form of Depositary Shares, each representing an ownership interest in one share of common stock. EnergySolutions said it expects the offering to price between $19 and $21 per Depositary Share.

The Salt Lake City, Utah-based company filed a preliminary prospectus with the SEC in March, but did not set any terms.

EnergySolutions is selling 11.85 million shares, and a shareholder is selling 18.15 million shares. The underwriters have also been granted the option to buy up to an additional 4.5 million shares from EnergySolutions and the selling stockholder to cover any overallotments.

The selling shareholder, ENV Holdings LLC, will own about 61 percent of the company's outstanding common stock following the offering, assuming the underwriters exercise their overallotment option in full.

Assuming an offering price of $20 per share, EnergySolutions expects proceeds of about $213.1 million. The company plans to use the IPO proceeds to pay $6.9 million to members of its current and former management related to employment agreements and to repay outstanding debt, fees and accrued interest under its credit facilities.

Any proceeds generated from the underwriters' overallotment option will be used to repay additional debt outstanding, the company said.

EnergySolutions provides specialized nuclear services, including engineering, decontamination, logistics, transportation, processing and disposal, to government and commercial customers.

Customers include the U.S. Departments of Energy and Defense, the U.K. Decommissioning Authority, Duke Energy Corp., Constellation Energy Group and Exelon Corp. EnergySolutions has long-term arrangements with 82 of the 104 operating nuclear reactors in the United States, according to the filing.

For the six months ended June 30, EnergySolutions recorded income of $23.5 million on revenue of $987.9 million.

Credit Suisse, JPMorgan and Morgan Stanley are serving as lead managers of the offering. UBS Investment Bank, Banc of America Securities LLC, Citi, D.A. Davidson & Co., Friedman Billings Ramsey, Lazard Capital Markets and Wedbush Morgan Securities are also underwriting the offering.

EnergySolutions' shares have been approved for listing on the New York Stock Exchange under the symbol “ES.”
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peHUB Note: EnergySolutions is owned by a private equity consortium of Lindsay Goldberg & Bessemer, Peterson Partners, and Creamer Investments. www.energysolutions.com