6. DEBT

Revolving Credit Facility and Term Loan due May 31, 2012

Utilization of the credit facility at September 30, 2011 and December 31, 2010 follows:


	September 30,		December 31,
	2011		2010
	(millions)
Borrowings under the revolving credit facility	$	-	$	-
Term loan		85.0		85.0
Letters of credit		16.9		17.3
Available credit		208.1		207.7

The credit facility is secured by assets of USEC Inc. and its subsidiaries, excluding equity in, and assets of, subsidiaries created to carry out future commercial American Centrifuge activities. In addition to the $85.0 million term loan, the credit facility includes aggregate lender commitments under the revolving credit facility of $225.0 million, including up to $150.0 million in letters of credit. Borrowings under the credit facility are subject to limitations based on established percentages of qualifying assets such as eligible accounts receivable and inventory. The interest rate on the term loan as of September 30, 2011 was 9.5%.

Convertible Senior Notes due 2014

Convertible senior notes amounted to $530.0 million as of September 30, 2011 and $575.0 million as of December 31, 2010. The convertible senior notes are due October 1, 2014. Interest of 3.0% is payable semi-annually in arrears on April 1 and October 1 of each year. The notes were not eligible for conversion to common stock as of September 30, 2011 or December 31, 2010.

In January 2011, USEC executed an exchange with a noteholder whereby USEC received convertible notes with a principal amount of $45 million in exchange for 6,952,500 shares of common stock and cash for accrued but unpaid interest on the convertible notes. In connection with this exchange, USEC recognized a gain on debt extinguishment of $3.1 million.