Babcock & Wilcox announced that it has completed the amendment and restatement of its senior secured credit facility. The amendment 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 credit facility, leaving $150 million available, under a delayed draw feature, through December 31, 2014.

The amended 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.

B&W said Merrill Lynch, BNP Paribas Securities, Credit Agricole Corporate and Investment Bank, J.P. Morgan Securities and Wells Fargo Securities acted as joint lead arrangers and joint bookrunning managers for the transaction.

“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.”

Charlotte, NC-based The Babcock & Wilcox Company is a provider of 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.