KBR improves its capital structure and financial flexibility
KBR indicated that on November 18, 2021, the organization effectively closed the fifth rider to its credit agreement dated April 25, 2018, as previously amended. As a result of a strategic change in the makeup of the organization’s activities, consistent performance against long-term monetary goals, improved corporate credit ratings and pursuit of the goal heritage issues, the amendment significantly improves organizational flexibility and reduces the cost of debt service.
The amendment increases capacity and flexibility under certain financial and negative covenants, allows the netting of unallocated cash up to a specified limit for the purpose of calculating the leverage ratio, reduces the interest rate payable and the applicable margin pricing schedule for Term Loan Facility A and Revolving Credit Facility and extends the maturity date of Term Loan A and Revolving Credit Facility from February 2025 to November 2026.
“This amendment marks a further step in the evolution of our capital structure and reflects the company’s shift towards delivering high-end differentiated solutions and technologies in growing and attractive end markets,” said Stuart Bradie, President and CEO of KBR. “By relying on the acceleration of the company’s dynamics, KBR has significant capital deployment flexibility by 2025 and beyond. “
For more information, see the full amendment to the credit agreement included as Exhibit 10.1 of the company’s current report on Form 8-K filed with the United States Securities and Exchange Commission on November 24, 2021 and available on the company’s website.
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