Foster Wheeler revises loan to allow up to $750 million of buybacks

By Susanna Moon

Chicago, Oct. 14 - Foster Wheeler Ltd. said it entered into a credit agreement on Sept. 13 with BNP Paribas, administrative agent and issuing lender to increase the amount of repurchases allowed.

The company may now buy back its stock for cash in one or more transactions of up to $750 million minus the amount of cash repurchases in 2008 before Sept. 29, the effective date of the amendment.

Provided, before and immediately after each cash buyback, no default will have occurred and the company and its restricted subsidiaries must have at least $300 million in cash and cash equivalents, certain permitted investments or unused revolving credit commitments under the credit agreement.

The amendment also raises permitted capital expenditures to $80 million from $40 million for fiscal year 2008 and to $70 million annually after that.

Foster Wheeler is a Clinton, N.J., provider of engineering and construction services to the energy industries.

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