Foster Wheeler closes on $290 million credit facility

By Sara Rosenberg

New York, Aug. 16 - Foster Wheeler Ltd. obtained a new $290 million senior secured credit facility that expires in April 2005. As a result of the new loan, liquidity has increased by $82 million and $904 million of the company's $1.1 billion in outstanding debt has been reclassified as long-term from current.

The facility consists of a term loan, revolver and letter of credit component, which have no scheduled principal payments prior to maturity. Security for the loan is the domestic assets, assets and stock of domestic subsidiaries and a majority of the stock of its first-tier foreign subsidiaries. The loan is replacing the company's previous credit facility.

In addition to the bank loan, the company has also obtained a $40 million receivables sale agreement maturing in Aug. 2005 that replaces the previous $50 million lease financing facility associated with its Clinton, N.J. headquarters.

"I am extremely pleased that we have completed these transactions, which provide greater financial flexibility and enable us to be more competitive in the markets we serve," said Raymond J. Milchovich, chairman, president and chief executive officer, in a news release. "We now have the ability to continue with our performance improvement initiatives, which include a plan to generate more than $150 million in cash over the next six months by monetizing assets, resolving project claims and collecting overdue receivables."

Foster Wheeler Ltd., based in Hamilton, Bermuda with operational headquarters in Clinton, N.J., offers a broad range of design, engineering, construction, manufacturing, project development and management, research, plant operation and environmental services.

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