Babcock & Wilcox Enters Material Agreement for Senior Notes

TL;DR

B&W just signed a big deal for its 2026 notes - check the details.

AI Summary

Babcock & Wilcox Enterprises, Inc. entered into a material definitive agreement on July 3, 2024, related to its Senior Notes due 2026. This agreement involves financial obligations for the company, specifically concerning its 8.125% Senior Notes and 6.50% Senior Notes, both maturing in 2026.

Why It Matters

This filing indicates a significant financial transaction or amendment concerning Babcock & Wilcox's outstanding debt, which could impact its financial structure and future borrowing capacity.

Risk Assessment

Risk Level: medium — Material definitive agreements, especially those involving debt, can carry inherent risks related to financial covenants, interest rates, and repayment obligations.

Key Numbers

• 8.125% — Senior Notes Interest Rate (Part of the material definitive agreement)
• 6.50% — Senior Notes Interest Rate (Part of the material definitive agreement)

Key Players & Entities

• Babcock & Wilcox Enterprises, Inc. (company) — Registrant
• July 3, 2024 (date) — Date of earliest event reported
• 8.125% (dollar_amount) — Interest rate for Senior Notes due 2026
• 6.50% (dollar_amount) — Interest rate for Senior Notes due 2026
• 2026 (date) — Maturity year for Senior Notes

FAQ

Key Financial Figures

• $0.01 — ange on which Registered Common stock, $0.01 par value per share BW New York Stock E
• $10,000,000 — eement, in an aggregate amount equal to $10,000,000 (the "Specified Revolver Paydown"); (ii
• $15,000,000 — iaries, in an aggregate amount equal to $15,000,000; (iii) to the repayment of letter of cr
• $1,600,000 — Association, in an amount not exceeding $1,600,000 in connection with the repayment and/or
• $54,000,000 — eement, in an aggregate amount equal to $54,000,000 (which amounts may be reborrowed in who
• $193,000,000 — enture, in an aggregate amount equal to $193,000,000; and (vii) the remainder to be retained
• $50,000 — The Company paid an amendment fee of $50,000 to Axos in consideration of the Second

Filing Documents

• bw-20240703.htm (8-K) — 32KB
• 0001630805-24-000054.txt ( ) — 209KB
• bw-20240703.xsd (EX-101.SCH) — 3KB
• bw-20240703_def.xml (EX-101.DEF) — 16KB
• bw-20240703_lab.xml (EX-101.LAB) — 30KB
• bw-20240703_pre.xml (EX-101.PRE) — 17KB
• bw-20240703_htm.xml (XML) — 6KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement Amendment to Credit Agreement On July 3, 2024, Babcock & Wilcox Enterprises, Inc. (the "Company") with certain subsidiaries of the Company as guarantors, the lenders party to the Credit Agreement (as defined below), and Axos Bank ("Axos"), as administrative agent, entered into the Second Amendment to Credit Agreement (the "Second Amendment"), to that certain Credit Agreement dated as of January 18, 2024 (as amended, restated, modified and/or supplemented from time to time, the "Credit Agreement"). Pursuant to the Second Amendment, Axos and the Lenders party to the Credit Agreement consented to the Company's engagement in certain specified sales of the assets of specified subsidiaries of the Company (such sales, the "Specified Transactions"), and agreed that the consummation of any Specified Transaction would not result in an event of default under the Credit Agreement. As a condition to the forgoing consent and agreements, the Company agreed to apply the net cash proceeds from the Specified Transactions in the following order, irrespective of the order of consummation of the Specified Transactions: (i) to the repayment of revolving loans under the Credit Agreement, in an aggregate amount equal to $10,000,000 (the "Specified Revolver Paydown"); (ii) to the repayment of liabilities in respect of the certain pension plans of the Company and its subsidiaries, in an aggregate amount equal to $15,000,000; (iii) to the repayment of letter of credit borrowings or advances, or if no such amounts are outstanding, to the cash collateralization of existing letter of credit obligations, in an aggregate amount equal to $10,000,000; (iv) to PNC Bank, National Association, in an amount not exceeding $1,600,000 in connection with the repayment and/or cash collateralization of certain existing facilities; (v) to the repayment of revolving loans under the Credit Agreement, in an aggregate amount equal to $54,000,000 (which amoun

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. July 10, 2024 By: /s/ Louis Salamone Louis Salamone Executive Vice President, Chief Financial Officer (Principal Accounting Officer and Duly Authorized Representative) 3

View Full Filing

View this 8-K filing on SEC EDGAR