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Issuer Free Writing Prospectus
Registration Statement No. 333-146063
Dated September 14, 2007
Filed Pursuant to Rule 433
USEC Inc.
3.0% Convertible Senior Notes due 2014
Final Terms and Conditions, dated September 24, 2007
     
Issuer:
  USEC Inc.
 
   
Notes Offered:
  $500,000,000 3.0% Convertible Senior Notes due 2014
 
   
Ranking:
  Senior unsecured
 
   
Price to Public:
  100% of face amount
 
   
Option to Purchase Additional Notes:
  $75,000,000 of Notes
 
   
Maturity Date:
  October 1, 2014
 
   
Pricing Date:
  September 24, 2007
 
   
Settlement Date:
  September 28, 2007
 
   
Coupon:
  3.0% 
 
   
Interest Payment Dates:
  April 1 and October 1, commencing on April 1, 2008
 
   
Conversion Premium:
  Approximately 22.5% above $9.76, which is the last reported sale price per share of USEC common stock on the New York Stock Exchange on September 24, 2007
 
   
Initial Conversion Price:
  Approximately $11.956 per share of USEC common stock
 
   
Initial Conversion Rate:
  83.6400 shares of USEC common stock per $1,000 principal amount of Notes
 
   
Fundamental Change Repurchase
Right:
  Holders may require USEC to repurchase Notes upon the occurrence of a fundamental change at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any.

 


 

     
Adjustment to Conversion Rate Upon a Make-Whole Fundamental Change:
  The following table sets forth the adjustments to the conversion rate, expressed as a number of additional shares to be received per $1,000 in principal amount of the Notes, in the event of a make-whole fundamental change as described in the preliminary prospectus supplement, based on the stock price and make-whole reference date of the make-whole fundamental change:
                                                                                                                 
    Stock Price                                                                                
                                                                                     
Date   $   9.76      $ 10.50     $ 12.00     $ 13.50     $ 15.00     $ 16.50     $ 18.00     $ 20.00     $ 22.50     $ 25.00     $ 35.00     $ 50.00     $ 75.00     $100.00  
09/24/07
    18.8190       16.6974       13.5384       11.2676       9.5731       8.2691       7.2394       6.1666       5.1555       4.3902       2.5916       1.3969       0.5786       0.2348  
10/01/08
    18.6104       16.4533       13.1546       10.8217       9.1074       7.8068       6.7930       5.7504       4.7818       4.0578       2.3859       1.2901       0.5376       0.2187  
10/01/09
    18.3468       16.0523       12.5935       10.1962       8.4688       7.1825       6.1968       5.2007       4.2928       3.6259       2.1203       1.1488       0.4782       0.1908  
10/01/10
    18.1478       15.6520       11.9552       9.4582       7.7058       6.4337       5.4823       4.5447       3.7136       3.1181       1.8158       0.9905       0.4139       0.1633  
10/01/11
    17.9674       15.1774       11.1352       8.4981       6.7150       5.4685       4.5695       3.7173       2.9935       2.4943       1.4496       0.7975       0.3306       0.1234  
10/01/12
    17.7831       14.5381       9.9764       7.1504       5.3502       4.1690       3.3693       2.6607       2.1020       1.7398       1.0215       0.5693       0.2318       0.0749  
10/01/13
    17.5062       13.4454       8.0107       4.9680       3.2685       2.3082       1.7507       1.3304       1.0471       0.8794       0.5402       0.3044       0.1216       0.0321  
10/01/14
    18.8190       11.5981       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000       0.0000  
         
    The exact stock prices and make-whole reference dates may not be set forth in the table above, in which case:
 
       
 
    If the stock price is between two stock price amounts in the table or the make-whole reference date is between two dates in the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year.
 
       
 
    If the stock price is greater than $100.00 per share, subject to adjustment, no adjustments will be made in the conversion rate.
 
       
 
    If the stock price is less than $9.76 per share, subject to adjustment, no adjustments will be made in the conversion rate.
 
       
    Notwithstanding the foregoing, in no event will the conversion rate exceed 102.4590 shares per $1,000 in principal amount of notes, subject to adjustments in the same manner as the conversion rate as set forth in the preliminary prospectus supplement.
 
       
Optional Redemption:   The Notes may not be redeemed prior to maturity at the option of the Company.
 
       
Denominations:   $1,000 

 


 

         
Concurrent Offering:   20 million shares of common stock, par value $0.10 per share, of USEC Inc. at an initial public offering price of $9.76 per share
 
       
Use of Proceeds:   The net proceeds to USEC from the sale of the Notes will be approximately $487.3 million (or approximately $560.7 million if the underwriters exercise their option to purchase additional Notes in full) and the net proceeds from the concurrent offering of 20 million shares of USEC common stock will be approximately $185.8 million (or approximately $213.8 million if the underwriters exercise their option to purchase additional shares in full). All of the net proceeds from these offerings will be applied to the development, demonstration and deployment of the American Centrifuge project and USEC’s general operating expenses and working capital requirements, as described in the preliminary prospectus supplement.
 
       
Day Count:   30/360 
 
       
Listing:   The Notes will not be listed.
 
       
CUSIP/ISIN:   90333EAC2 / US90333EAC21
 
       
Joint Bookrunners:   Goldman, Sachs & Co.
    Wachovia Capital Market, LLC
The issuer has filed a registration statement (including a prospectus and prospectus supplements) with the Securities and Exchange Commission for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the Securities and Exchange Commission for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the Web site of the Securities and Exchange Commission at www.sec.gov. Copies of the prospectus and prospectus supplements relating to the offering may be obtained from Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004, Attention: Prospectus Department (866-471-2526); Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department (4th Floor); or Wachovia Securities’ Equity Syndicate Department, 375 Park Avenue, 4th Floor, New York, NY 10152, or by e-mail at equity.syndicate@wachovia.com.
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