Fluor refinances with expanded $1.8 billion revolver, LoC facility

By Susanna Moon

Chicago, Nov. 14 - Fluor Corp. obtained a $1.8 billion revolving loan and letter-of-credit facility to replace its $500 million letter-of-credit facility and $800 million revolving loan and financial letter-of-credit facility.

The facility has a $1 billion sublimit for cash drawings and the issuance of financial letters of credit, a maturity date of Nov. 8, 2017 and an accordion feature for an additional $500 million for a maximum facility size of $2.3 billion.

The company entered the credit agreement on Nov. 9 with BNP Paribas as administrative agent and an issuing lender, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the syndication agent, and Citibank, NA and Bank of Tokyo-Mitsubishi UFJ, Ltd. are the co-documentation agents.

Interest on the loans will be Libor plus a spread based on the company's non-credit-enhanced senior unsecured long-term debt, the filing noted.

The loan terms require the company to maintain a maximum ratio of consolidated debt to consolidated tangible net worth of 1 times and to cap the total debt of the company's subsidiaries at $600 million.

Along with the facility, the company also amended its $1.2 billion revolving performance letter-of-credit facility agreement due Dec. 13, 2015 to increase the cap on the total debt for company subsidiaries $600 million from $500 million and update the defaulting lender provisions to match the terms of the facility.

Fluor is an Aliso Viejo, Calif.-based international engineering concern.

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