Babcock & Wilcox Enterprises Announces New $150 Million Senior Secured Credit Facility; Reaffirmed Credit Rating of BB+
23 January 2024 - 8:15AM
Business Wire
- Establishes new revolving credit facility that replaces its
prior facilities to enhance the Company’s liquidity and growth
initiatives
- Refinancing expected to provide annual interest cost savings of
approximately $4 million
- Company and its Senior Unsecured Notes received a reaffirmed
credit rating of “BB+” from the Egan-Jones Ratings Company
Babcock & Wilcox Enterprises, Inc. ("B&W" or the
"Company") (NYSE: BW) today announced that, effective January 18,
2024, it has entered into a new three-year senior secured credit
agreement with Axos Bank (“Axos”) under which Axos has provided an
asset-based revolving credit facility of up to $150 million that
can be used to support letters of credit, renewable energy growth
initiatives and potential accretive business purposes.
The new revolver provides for reduced interest rates on letters
of credit and much greater flexibility, with overall use of up to
$150 million, versus the previous facilities that were limited to a
$50 million revolver and a separate letters of credit facility. The
new Financing Agreements have a maturity date of January 18,
2027.
All obligations under the Company’s prior Credit Agreement with
PNC Bank N.A. (“PNC”) as administrative agent have been discharged,
and the Credit Agreement has been terminated. Letters of credit
issued under the previous facility with PNC are expected to
transition to the Axos facility over the next several months. The
Company expects to achieve annual interest cost savings of
approximately $4 million under its new facility.
B&W also announced that the Company and its Senior Unsecured
Notes (NYSE: “BWSN” and “BWNB”) have received a reaffirmed credit
rating of “BB+” from the Egan-Jones Ratings Company. The credit
rating follows a comprehensive review and takes into consideration
current market conditions.
Kenneth Young, B&W Chairman and Chief Executive Officer,
commented, “The closing of this new facility and reaffirmation of
our credit rating are significant positive developments that
bolster our efforts to support multi-year projects and capitalize
on future growth through evolving BrightLoop™ and ClimateBright™
technology opportunities. These developments also demonstrate the
confidence both Axos and Egan-Jones have in B&W’s business, not
only today but also in the years ahead.”
“With our recent strategy changes, we are confident in realizing
stronger cash flows from our Thermal operations as we continue to
expand and implement our new renewable technologies, including
hydrogen production and carbon capture,” Young added. “The
reaffirmation of our credit rating and our new Senior Secured
Credit facility reflect the stability of our business model and our
continued commitment to our long-term growth capabilities.”
About Babcock & Wilcox Enterprises
Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises,
Inc. is a leader in energy and environmental products and services
for power and industrial markets worldwide. Follow B&W on
LinkedIn and learn more at babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
B&W’s new $150 million senior secured credit agreement and the
reaffirmation of its credit rating. These forward-looking
statements are based on management’s current expectations and
involve a number of risks and uncertainties. For a more complete
discussion of these risk factors, see our filings with the
Securities and Exchange Commission, including our most recent
annual report on Form 10-K. If one or more of these risks or other
risks materialize, actual results may vary materially from those
expressed. We caution readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and we undertake no obligation to update or revise any
forward-looking statement, except to the extent required by
applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240122777090/en/
Investor Contact: B&W Investor Relations 704.625.4944
investors@babcock.com
Media Contact: Ryan Cornell B&W Public Relations
330.860.1345 rscornell@babcock.com
Babcock and Wilcox Enter... (NYSE:BW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Babcock and Wilcox Enter... (NYSE:BW)
Historical Stock Chart
From Sep 2023 to Sep 2024