The Babcock & Wilcox Company (NYSE: BWC) (“B&W”) has completed the amendment and restatement of its existing $700 million senior secured credit facility. B&W currently has no borrowings outstanding and approximately $218.5 million of letters of credit outstanding under the amended and restated facility. The entire unused amount is available for the issuance of performance and financial letters of credit, borrowing for working capital needs and general corporate purposes.
The amended and restated facility extends the maturity date of the credit facility to June 2017 and reduces the interest rate on borrowings under the credit facility to LIBOR + 1.5%, which rate will vary if the credit rating for the facility changes. It also includes an option permitting B&W to increase the size of the credit facility by up to an additional $300 million by receiving commitments from new or existing lenders.
“We are pleased with the results of the syndication of our amended and restated credit facility, 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 revised facility increases our financial flexibility and supports our ability to meet our operating and strategic goals.”
Merrill Lynch, Pierce, Fenner & Smith Incorporated, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC acted as joint lead arrangers and joint book running managers for the transaction.
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