Babcock & Wilcox Closes $1.3 Bln Credit Facility; Extends Maturity To 2019

(RTTNews) - The Babcock & Wilcox Company or B&W (BWC) announced the completion of the amendment and restatement of its senior secured credit facility.

The company said 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.

B&W stated that 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.