BWX gets $250 million U.S., Canadian dollar incremental term loans

By Marisa Wong

Morgantown, W.Va., Sept. 2 – BWX Technologies, Inc. amended its credit agreement dated May 11, 2015, with Bank of America NA as administrative agent to add a new $112.5 million dollar-denominated term loan facility and a new $137.5 million-equivalent Canadian dollar term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The new incremental term loans do not count against the $250 million limit for incremental term loans, revolving credit borrowings or letter-of-credit commitments contained in the credit agreement.

The new loans may be drawn in a single drawing at any time prior to Dec. 31. If drawn, each loan will mature on June 30, 2020, and the company will be required to make quarterly amortization payments of 1.25% of the aggregate amount borrowed.

If drawn, the incremental term loans would bear interest at the same rates applicable to the company’s existing revolver and term loan. The applicable margin for Libor loans ranges from 125 basis points to 175 bps, depending on the company’s leverage ratio. The rate is initially Libor plus 137.5 bps.

A commitment fee of 17.5 bps will be charged on the unused commitments. The commitment fee generally ranges from 15 bps to 25 bps, also based on the leverage ratio.

Proceeds will be used for working capital, capital expenditures, permitted acquisitions and other corporate purposes.

In connection with the amendment, the company paid some upfront fees to the lenders that committed to fund the incremental term loans and an arrangement fee to Merrill Lynch, Pierce, Fenner & Smith Inc.

BWX Technologies is a Lynchburg, Va., supplier of nuclear operations services and products to the U.S. government and commercial clients.

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