B&W Closes $1.3 Billion Credit Facility; Extends Maturity to 2019
June 25 2014 - 8:30AM
Business Wire
The Babcock & Wilcox Company (B&W) (NYSE:BWC) today
announced that it has completed the amendment and restatement of it
senior secured credit facility. The Second Amended and Restated
Credit Agreement increases B&W’s revolving credit facility from
$700 million to $1 billion for the issuance of performance and
financial letters of credit, working capital needs, and general
corporate purposes. The new facility also adds a term loan facility
of up to $300 million, $150 million of which was borrowed at the
close of the amended and restated credit facility, leaving $150
million available, under a delayed draw feature, through December
31, 2014.
The amended and restated credit facility also extends the
maturity date of the credit facility to June 2019 and reduces the
interest rate on borrowings under the credit facility to LIBOR +
1.375% beginning in August 2014, with the rate varying should the
credit rating for the facility change. It also includes an option
permitting B&W to increase the size of the credit facility by
up to an additional $400 million based on receiving additional
commitments from new or existing lenders.
“We are pleased by the results of the syndication of this Second
Amended and Restated Credit Agreement, as well as with the
excellent relationships we have with our lender group,” said
Anthony S. Colatrella, B&W’s Senior Vice President and Chief
Financial Officer. “The larger, revised facility increases our
financial flexibility and supports B&W's ability to meet its
operating and strategic growth goals.”
Merrill Lynch, Pierce, Fenner & Smith Incorporated, BNP
Paribas Securities Corp., Credit Agricole Corporate and Investment
Bank, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
acted as joint lead arrangers and joint bookrunning managers for
the transaction.
About B&WHeadquartered in Charlotte, N.C., The
Babcock & Wilcox Company is a leader in clean energy technology
and services, primarily for the nuclear, fossil and renewable power
markets, as well as a premier advanced technology and mission
critical defense contractor. B&W has locations worldwide and
employs approximately 11,600 people, in addition to approximately
10,200 joint venture employees. Learn more at www.babcock.com.
The Babcock & Wilcox CompanyMedia
Contact:Aimee Mills, 980-365-4583Media Relations
Leadaemills@babcock.comorInvestor Contact:Jenny Apker,
704-625-4937Vice President, Treasurer and Investor
Relationsinvestors@babcock.com