KBR closed the fifth amendment to its credit agreement dated April 25, 2018. According to an 8K filed with the SEC, Bank of America is the administrative agent, swing line lender and a letter of credit issuer for the credit agreement. The amended agreement will include £122.1 million ($162.92 million) term loans for KBR’s subsidiary, Kellogg Brown & Root Limited, according to the 8K. The amendment will also improve the KBR’s flexibility and reduce its debt service cost.

“This amendment marks another milestone in our capital structure evolution and reflects the company’s shift toward delivery of high-end differentiated solutions and technologies in growing, attractive end markets,” Stuart Bradie, president and CEO of KBR, said. “Building on accelerating momentum across the business, KBR has significant capital deployment flexibility as we look ahead to 2025 and beyond.”

The amendment increases capacity and flexibility under certain financial and negative covenants, permits the netting of unrestricted cash up to a specified cap for purposes of calculating the leverage ratio, reduces the interest rate payable and applicable margin pricing grid for the term loan A facility and the revolving credit facility and extends the maturity date of the term loan A facility and the revolving credit facility from February 2025 to November 2026.