B&W Reports on Existing Senior Notes & Preferred Stock Obligations

TL;DR

**B&W just confirmed its existing debt and preferred stock are still on the books.**

AI Summary

Babcock & Wilcox Enterprises, Inc. filed an 8-K on January 22, 2024, reporting an event on January 18, 2024, related to its existing financial obligations. The filing specifically mentions its 8.125% Senior Notes due 2026, 6.50% Senior Notes due 2026, and 7.75% Series A Cumulative Perpetual Preferred Stock. This matters to investors because it indicates ongoing management of the company's debt and preferred stock, which are key components of its capital structure and impact its financial health and future earnings available to common shareholders.

Why It Matters

This filing confirms the continued existence and terms of Babcock & Wilcox's significant debt and preferred stock, which directly influence the company's interest expenses and dividend payments, affecting profitability and cash flow.

Risk Assessment

Risk Level: low — This filing is primarily informational, confirming existing financial obligations rather than announcing new, unexpected, or adverse events.

Analyst Insight

Investors should note these existing obligations as they represent fixed costs and claims on earnings. While this filing is routine, it's a reminder to monitor the company's ability to service this debt and preferred dividends, especially as the 2026 maturities approach.

Key Numbers

• 8.125% — Interest rate (on Senior Notes due 2026)
• 6.50% — Interest rate (on Senior Notes due 2026)
• 7.75% — Dividend rate (on Series A Cumulative Perpetual Preferred Stock)
• 2026 — Maturity year (for both Senior Notes)

Key Players & Entities

• Babcock & Wilcox Enterprises, Inc. (company) — the registrant filing the 8-K
• 8.125% Senior Notes (dollar_amount) — a type of debt obligation due 2026
• 6.50% Senior Notes (dollar_amount) — a type of debt obligation due 2026
• 7.75% Series A Cumulative Perpetual Preferred Stock (dollar_amount) — a type of preferred equity obligation
• January 18, 2024 (date) — date of the earliest event reported
• January 22, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• Babcock & Wilcox will continue to manage its debt obligations, potentially refinancing the 2026 Senior Notes as their maturity approaches. (Babcock & Wilcox Enterprises, Inc.) — medium confidence, target: 2025-2026

FAQ

Key Financial Figures

• $0.01 — e on which Registered Common stock, $0.01 par value per share BW New York Stock
• $150 million — Credit Agreement provides for an up to $150 million asset-based revolving credit facility (
• $100 million — orrowing base calculation), including a $100 million letter of credit sublimit. The obligati
• $1,500,000 — to pay (i) an origination fee equal to $1,500,000, (ii) a commitment fee equal to 0.50% p
• $1,000 — and (iv) a collateral monitoring fee of $1,000 per month. The Company is permitted to
• $3 million — the Credit Agreement (or approximately $3 million) as consideration for B. Riley's agreem

Filing Documents

• tm243807d1_8k.htm (8-K) — 40KB
• tm243807d1_ex99-1.htm (EX-99.1) — 12KB
• tm243807d1_img001.jpg (GRAPHIC) — 2KB
• 0001104659-24-005580.txt ( ) — 290KB
• bw-20240118.xsd (EX-101.SCH) — 4KB
• bw-20240118_def.xml (EX-101.DEF) — 27KB
• bw-20240118_lab.xml (EX-101.LAB) — 38KB
• bw-20240118_pre.xml (EX-101.PRE) — 26KB
• tm243807d1_8k_htm.xml (XML) — 7KB

01 Entry into a Material Definitive

Item 1.01 Entry into a Material Definitive Agreement On January 18, 2024, Babcock & Wilcox Enterprises, Inc. (the "Company") entered into that certain Credit Agreement, with certain subsidiaries of the Company as guarantors, the lenders party thereto from time to time and Axos Bank ("Axos"), as administrative agent, swingline lender and letter of credit issuer (the "Credit Agreement"). Capitalized terms used but not defined herein have the meaning given to them in the Credit Agreement. The Credit Agreement provides for an up to $150 million asset-based revolving credit facility (with availability subject to a borrowing base calculation), including a $100 million letter of credit sublimit. The obligations of the Company under the Credit Agreement are guaranteed by certain domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. ("B. Riley") has provided a guaranty of payment with regard to the Company's obligations under the Credit Agreement, as further described below. The Company expects to use the proceeds and letter of credit availability under the Credit Agreement to (i) pay off the Company's current revolving credit facility with PNC Bank, National Association ("PNC"), (ii) provide for working capital needs of the Company and its subsidiaries, (iii) provide cash collateral to secure letters of credit to be issued under the Credit Agreement, and (iv) provide for general corporate purposes of the Company and its subsidiaries. The Credit Agreement has a maturity date of (i) January 18, 2027, or (ii) if the Company's 8.125% and 6.50% senior notes due 2026 are not refinanced by August 30, 2025 or the maturity date has not otherwise been extended to a date at least 6 months beyond the Credit Facility maturity, August 30, 2025. The interest rates applicable under the Credit Agreement are: (i) with respect to SOFR Loans, (a) the Secured Overnight Financing Rate ("SOFR") plus 5.25% if the outstanding principal amount of loans is equal to or less th

03 Creation of a Direct Financial Obligation

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference into this Item 2.03.

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure On January 22, 2024, the Company issued a press release announcing the entry into the Credit Agreement and the other documents and related transactions discussed in Item 1.01 above. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits. Exhibit No. Description 99.1 Press release, dated January 22, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BABCOCK & WILCOX ENTERPRISES, INC. January 22, 2024 By: /s/ Louis Salamone Louis Salamone Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Accounting Officer and Duly Authorized Representative)

View Full Filing

View this 8-K filing on SEC EDGAR