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Company has entered negotiations with lenders for comprehensive
refinancing
AKRON, Ohio--(BUSINESS WIRE)--
Babcock & Wilcox Enterprises, Inc. (NYSE: BW) (B&W) announced today that
the Company has amended its Credit Agreement to extend the deadline to
take certain required corporate actions related to refinancing from
January 10, 2020 to January 20, 2020 and to maintain the current
sublimit on borrowing under the company’s revolving credit facility
portion of the Agreement. As previously disclosed, the Company is
required to refinance by March 15, 2020. B&W is in broader negotiations
with creditors to refinance the current senior debt and extend maturity
which is anticipated to be completed on or before January 20, 2020.
“This interim amendment is a collaborative first step toward a
comprehensive debt refinancing on an accelerated timeframe. With the
assistance of B. Riley FBR, Inc. and our existing senior lender
syndicate, we expect to further amend our Credit Agreement by January
20, 2020, well in advance of our March 15, 2020 requirement,” said
Kenneth Young, B&W Chief Executive Officer. “We are pleased that our
lenders recognize the momentum we have achieved through our turnaround
efforts and the opportunities we have that leverage our technologies and
core businesses. We look forward to finalizing an agreement that
provides long-term restructuring of the company’s debt, a critical next
step following the Company’s return to profitability in the second and
third quarters of 2019, and a position of strength with our core markets
and customers. We expect our financial results for the fourth quarter of
2019 will continue to demonstrate this strength and provide further
confidence in our objectives for 2020.”
Forward-Looking Statements
B&W cautions that this release contains forward-looking statements,
including, without limitation, statements relating to the timing and
terms of further anticipated amendments to our Credit Agreement, our
expected 2019 financial results and our ability to satisfy our 2020
objectives. These forward-looking statements are based on management’s
current expectations and involve a number of risks and uncertainties,
including, among other things, our ability to continue as a going
concern; our recognition of any asset impairments as a result of any
decline in the value of our assets or our efforts to dispose of any
assets in the future; our ability to obtain and maintain sufficient
financing to provide liquidity to meet our business objectives, surety
bonds, letters of credit and similar financing; our ability to satisfy
or obtain waivers of the requirements under the Credit Agreement, as
amended; our ability to refinance the Credit Agreement in a timely
manner, if at all; our ability to obtain waivers of required pension
contributions; the highly competitive nature of our businesses; general
economic and business conditions, including changes in interest rates
and currency exchange rates; cancellations of and adjustments to backlog
and the resulting impact from using backlog as an indicator of future
earnings; our ability to perform contracts on time and on budget, in
accordance with the schedules and terms established by the applicable
contracts with customers; failure by third-party subcontractors,
partners or suppliers to perform their obligations on time and as
specified; our ability to successfully resolve claims by vendors for
goods and services provided and claims by customers for items under
warranty; our ability to realize anticipated savings and operational
benefits from our restructuring plans, and other cost-savings
initiatives; our ability to successfully address productivity and
schedule issues in our Vølund and Other Renewable segment, including the
ability to complete our European EPC projects within the expected time
frame and the estimated costs; our ability to successfully partner with
third parties to win and execute contracts within our Vølund and Other
Renewable segment; changes in our effective tax rate and tax positions,
including any limitation on our ability to use our net operating loss
carryforwards and other tax assets; our ability to maintain operational
support for our information systems against service outages and data
corruption, as well as protection against cyber-based network security
breaches and theft of data; our ability to protect our intellectual
property and renew licenses to use intellectual property of third
parties; our use of the percentage-of-completion method of accounting to
recognize revenue over time; our ability to successfully manage research
and development projects and costs, including our efforts to
successfully develop and commercialize new technologies and products;
the operating risks normally incident to our lines of business,
including professional liability, product liability, warranty and other
claims against us; changes in, or our failure or inability to comply
with, laws and government regulations; actual or anticipated changes in
governmental regulation, including trade and tariff policies;
difficulties we may encounter in obtaining regulatory or other necessary
permits or approvals; changes in, and liabilities relating to, existing
or future environmental regulatory matters; changes in actuarial
assumptions and market fluctuations that affect our net pension
liabilities and income; potential violations of the Foreign Corrupt
Practices Act; the loss of key personnel and the continued availability
of qualified personnel; our ability to negotiate and maintain good
relationships with labor unions; changes in pension and medical expenses
associated with our retirement benefit programs; social, political,
competitive and economic situations in foreign countries where we do
business or seek new business; the possibilities of war, other armed
conflicts or terrorist attacks; the willingness of customers and
suppliers to continue to do business with us on reasonable terms and
conditions; and our ability to successfully consummate strategic
alternatives for non-core assets, if we determine to pursue them. If one
or more of these risks or other risks materialize, actual results may
vary materially from those expressed. For a more complete discussion of
these and other risk factors, see our filings with the Securities and
Exchange Commission, including our most recent annual report on Form
10-K. We caution readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by applicable
law.
About B&W
Headquartered in Akron, Ohio, Babcock & Wilcox is a global leader in
energy and environmental technologies and services for the power and
industrial markets. Follow us on Twitter @BabcockWilcox and learn more
at
www.babcock.com
.
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https://www.businesswire.com/news/home/20200107005230/en/
Investor Contact:
Megan Wilson
Vice President,
Corporate Development & Investor Relations
Babcock & Wilcox
704.625.4944
| investors@babcock.com
Media Contact:
Ryan Cornell
Public Relations
Babcock
& Wilcox
330.860.1345 | rscornell@babcock.com
Source: Babcock & Wilcox Enterprises, Inc.