Shares of Centrus Energy (LEU -13.29%) nosedived 9.9% through 9:45 a.m. ET Wednesday.

The supplier of low-enriched uranium used as atomic fuel for nuclear power plants announced last night that it will issue $650 million worth of convertible senior notes due in 2032 (i.e., debt convertible into stock) in an effort to raise the cash it needs to build a supplemental business producing high-assay, low-enriched uranium (HALEU) for use in advanced reactors.

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Details, details

If there's sufficient interest among the banks underwriting the debt offering, Centrus might upsize its debt offering by $100 million, to $750 million total.

Centrus hasn't yet said what interest rate the notes will pay, although in deals like these notes often pay interest below market rates for ordinary debt. The downside for investors is more on the convertible side of things -- where the company issuing the notes eventually lets its lenders convert the notes into equity in the company, diluting the shareholdings of existing investors.

Should you sell Centrus stock?

It's not immediately clear why Centrus is doing this offering. Profitable where most "nuclear stocks" are losing money, Centrus generates significant free cash flow already -- $107 million over the last 12 months -- so there seems to be no immediate cash need. Indeed, Centrus already has more cash than debt on its balance sheet, and seems in a pretty healthy condition.

Viewed most favorably, this suggests Centrus will probably get pretty good terms on its debt offering, keeping interest expense low. It also suggests Centrus has a deal in mind, or at the very least, is prepared to make a big push toward building out its HALEU uranium business.

Investors are selling Centrus stock, and I understand why. But I rather suspect they should be buying Centrus stock instead.