Babcock & Wilcox Enterprises, Inc. announced that the Company has amended its Credit Agreement to comprehensively refinance its debt in advance of its March 15, 2020 requirement. Under the terms of the Agreement, B. Riley FBR, Inc. has agreed to fully backstop $200 million in debt refinancing, which will be used to fully repay the existing revolving credit facility balance by May 11, 2020, and to provide an additional $30 million under Tranche A-4 of the Company’s last out term loans to support the Company’s growth. The Company’s senior lender syndicate has agreed to provide a new revolving credit facility on May 11, 2020 with $30 million of borrowing availability, in addition to increased availability for letters of credit. Finally, the Agreement sets a maturity date for the new revolving credit facility and letters of credit of January 1, 2022.
“This critical agreement represents a significant milestone for B&W as we build on the improvements we made in 2019 to return to profitability and position the company for growth. We appreciate the ongoing commitment of B. Riley FBR, Inc. and our lender group to support B&W’s future,” said Kenneth Young, B&W Chief Executive Officer. “We expect this agreement to provide the financial stability to drive B&W’s ongoing transformation. Now, we are able to continue to move forward and focus on enhancing our core strengths, delivering our world-class technologies and services to our customers, and generating sustained value for our shareholders.”
“With this key part of B&W’s transformation complete, we are now investing in growth opportunities across our portfolio in the U.S., Europe, the Middle East and Asia,” Young continued. “We expect our consolidated fourth quarter 2019 results to significantly outperform the third quarter’s consolidated operating loss of $3.2 million and adjusted EBITDA of $10.1 million, solidifying our turnaround and accelerating the business into an even stronger 2020. Our improvement over the past 12 months continues to boost bottom line performance and increase cash flows from strong recurring parts and services revenues, and we expect positive consolidated operating income in the fourth quarter of 2019, after 12 consecutive quarters of operating losses. Our improved balance sheet and overall financial performance enable our participation in new opportunities across all of our business segments, including renewable waste-to-energy, environmental equipment, aftermarket services, and operations and maintenance. We are leveraging a robust pipeline to drive new bookings as we emerge a stronger B&W, ready to execute our core strategy founded on technology, services and experience.”