B. Riley FBR has entered into a credit agreement with Babcock & Wilcox Enterprises, a global supplier of energy and environmental technologies and services which has been in operation for more than 150 years. B. Riley FBR served as lead arranger for a $150 million secured financing via a last out term loan for B&W.
This follows an additional $10 million in commitments from affiliates of B. Riley FBR under a last out term loan announced on March 19, 2019. Proceeds from the new financing will be used to pay down a portion of B&W’s revolver facility, relieve certain project liabilities, and provide funds for working capital purposes. The new financing provides B&W with the additional liquidity needed to continue its operational transformation.
“Our work with B&W demonstrates our unique ability to develop creative solutions to support our clients, and our continued focus on investing in companies with strong potential to increase value and future cash flows,” said Perry Mandarino, senior managing director, head of Corporate Restructuring, B. Riley FBR. “This credit facility provides B&W with the necessary liquidity to continue its transformation. We are pleased to serve as a strategic partner to B&W as it refocuses its operations to execute on its core strengths as a leader and superior technology provider across all its market segments.”
Additionally, B. Riley FBR has agreed to backstop a $50 million rights offering which is subject to approval by B&W shareholders. It is anticipated that proceeds from the rights offering will be used to pay down a portion of the new $150 million term loan. B. Riley FBR has also agreed to provide an uncommitted incremental term loan credit facility of up to $15 million.
