KBR Reports New Material Agreement & Financial Obligation

Ticker: KBR · Form: 8-K · Filed: Jan 23, 2024

Sentiment: neutral

Topics: debt, contract, financial-obligation

TL;DR

**KBR just took on new debt or a big contract, watch for details on its impact.**

AI Summary

KBR, Inc. filed an 8-K on January 23, 2024, reporting an event that occurred on January 19, 2024, concerning the entry into a material definitive agreement and the creation of a direct financial obligation. This filing indicates KBR has taken on new financial commitments, which could impact its balance sheet and future profitability. Investors should understand that new obligations, while potentially tied to growth, also introduce financial risk and could affect the company's valuation.

Why It Matters

This filing signals KBR, Inc. has entered into a significant new contract or financing arrangement, which could either fuel growth or add substantial debt, directly impacting the company's financial health and stock performance.

Risk Assessment

Risk Level: medium — The filing indicates a new material definitive agreement and financial obligation, the specifics of which are not detailed, making the potential impact on KBR's financial health uncertain.

Analyst Insight

Investors should monitor KBR's upcoming financial disclosures for specific details regarding the material definitive agreement and direct financial obligation to assess their potential impact on the company's balance sheet and future earnings.

Key Players & Entities

Forward-Looking Statements

FAQ

What specific type of 'Material Definitive Agreement' did KBR, Inc. enter into?

The filing states KBR, Inc. entered into a 'Material Definitive Agreement' but does not provide specific details about the nature or terms of this agreement within the provided text.

What is the nature and amount of the 'Direct Financial Obligation' KBR, Inc. created?

The 8-K indicates the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant' but does not disclose the specific nature or dollar amount of this obligation.

When was the earliest event reported in this 8-K filing?

The earliest event reported in this 8-K filing occurred on January 19, 2024.

What is KBR, Inc.'s primary business address?

KBR, Inc.'s principal executive offices are located at 601 Jefferson Street, Suite 3400, Houston, Texas 77002.

On which stock exchange is KBR, Inc.'s Common Stock listed?

KBR, Inc.'s Common Stock, with a $0.001 par value, is listed on the New York Stock Exchange under the trading symbol KBR.

Filing Stats: 843 words · 3 min read · ~3 pages · Grade level 10.3 · Accepted 2024-01-23 17:25:08

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On January 19, 2024, KBR, Inc. (the "Company") entered into Amendment No. 11 (the "Amendment") to its existing Credit Agreement, dated as of April 25, 2018 (as amended by Amendment No. 1, dated as of November 12, 2018, Amendment No. 2, dated as of February 7, 2020, Amendment No. 3, dated as of July 2, 2020, Amendment No. 4, dated as of September 14, 2020, Amendment No. 5, dated as of November 18, 2021, Amendment No. 6, dated as of May 17, 2022, Amendment No. 7, dated as of December 30, 2022, Amendment No. 8, dated as of February 6, 2023, Amendment No. 9, dated as of June 6, 2023, and Amendment No. 10, dated as of July 26, 2023, the "Existing Credit Agreement", and as further amended by the Amendment, the "Credit Agreement"), with Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, the lenders party thereto and each of the subsidiaries of the Company party thereto. The Amendment provides for an incremental term B loan facility ("Term Loan B") in an aggregate principal amount of $1.0 billion and extends the Term Loan B maturity date by approximately four years, from February 7, 2027, to January 19, 2031. In addition, the Amendment reduces the interest rate margin applicable to the Term Loan B. On January 19, 2024, the Company borrowed the full $1.0 billion principal amount available under this additional loan and used the proceeds (a) to repay all amounts of principal and accrued interest outstanding under the Company's existing term B loan facility, (b) to partially repay outstanding amounts of principal and accrued interest under the Company's revolving credit facility and (c) to pay fees and expenses incurred in connection with the Company's entry into the Amendment . The Company's entry into the Amendment and use of proceeds did not significantly impact the Company's consolidated net leverage ratio as measured under the Credit Agreement immediately thereaft

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits 10.1 Amendment No. 11 to the Credit Agreement, dated as of January 19, 2024, with Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, the lenders party thereto and each of the subsidiaries of the Company party thereto. 104 Cover Page Interactive Data file (formatted as Inline XBRL) SIGNATURE 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 hereunto duly authorized. KBR, INC. January 23, 2024 /s/ Sonia Galindo Sonia Galindo Executive Vice President, General Counsel & Corporate Secretary

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