Foster Wheeler enters $750 million unsecured revolving line of credit

By Jennifer Chiou

New York, Aug. 3 - Foster Wheeler LLC and an indirect subsidiary of Foster Wheeler AG entered into a credit agreement with BNP Paribas as administrative agent, providing for a $750 million unsecured revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement also covers Foster Wheeler Inc., Foster Wheeler USA Corp., Foster Wheeler North America Corp., Foster Wheeler Energy Corp., Foster Wheeler International Corp., Foster Wheeler Ltd. and Foster Wheeler Holdings Ltd.

Funds are available for the issuance of letters of credit and up to $250 million of revolving credit loans.

The facility will come due on Aug. 3, 2017. It has two one-year extension options and may be increased by up to $300 million.

There is no prepayment penalty.

Borrowings will bear interest at Libor plus 125 basis points to 225 bps depending on ratings. There is a commitment fee of 17.5 bps to 50 bps.

The agreement requires the company to maintain a total leverage ratio of no more than 3.00 to 1.00 and an interest coverage ratio of less than or equal to 3.00 to 1.00 as at the last day of any fiscal quarter, the filing stated.

The engineering and construction company is based in Geneva, Switzerland.

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