Daily News: June 11, 2012

Merrill Lynch, Others Amend B&W Credit Facility

The Babcock & Wilcox Company (B&W) announced that it has completed the amendment and restatement of its existing $700 million senior secured credit facility. Merrill Lynch, Pierce, Fenner & Smith, BNP Paribas Securities, J.P. Morgan Securities and Wells Fargo Securities acted as joint lead arrangers and joint bookrunning managers for the transaction.

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.”

The Babcock & Wilcox Company is a provider in advanced 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.