KBR, Inc., a global provider of differentiated professional services and technologies to the Government Services and Hydrocarbons sectors, announced that it completed the debt-only refinancing which was announced earlier this year.

KBR has entered into a new Senior Secured Credit Facility in the amount of $2.15 billion. The components include a $500 million Senior Secured Revolving Line of Credit, a $500 million Performance Letter of Credit Facility, and a $350 million Senior Secured Delayed Draw Term Loan A all maturing in April 2023, and also a $800 million Senior Secured Term Loan B maturing in April 2025.

Proceeds from the facilities will be used to fund recent M&A and project requirements and to permanently finance existing revolver borrowings, and will better position KBR's debt capital structure to enable growth and financial flexibility for the future.

Specifically, KBR will utilize a portion of this financing for the acquisition of Stinger Ghaffarian Technologies, Inc. (SGT) which is a significant step forward in KBR's strategy to expand its high-tech professional services across NASA and other Government Services entities and to secure more stable, long term funding sources. In addition, the Term Loan A facility will be used to fund KBR's loan to the JKC joint venture in order to complete the combined cycle power plant on the Ichthys project.

These facilities extend KBR's maturities, provide attractively priced credit capital to fuel investments for growth, and provide for a ring-fencing for capital required for the Ichthys project to clarify visibility of anticipated outflows and inflows.

"Our successful strategy to build a greater base of recurring, low capital intensity services contracts across our portfolio, coupled with other de-risking actions has provided a more predictable stream of cash flows enabling us to tap into the debt markets at this time," said KBR President and CEO Stuart Bradie.

KBR expects its gross debt to EBITDA leverage ratio to be approximately 3.0x after funding of the new facility, and expects to resume a lowering of this ratio over time as has recently been the case with a combination of profit growth, cash generation, and debt reductions.

Bank of America, N.A., BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG Bank, Ltd., The Bank of Nova Scotia, SunTrust Robinson Humphrey, Inc., and BBVA Securities Inc. acted as Joint Lead Arrangers.