BWX Technologies, Inc. has entered into an amendment to its existing Second Amended and Restated Credit Agreement, extending the maturity of its $1.25 billion senior secured revolving credit facility by one year. The amendment also modifies key financial covenants and the pricing structure to provide greater flexibility and potentially lower borrowing costs contingent on the company's credit ratings.
Key Details
- Maturity Extension: The maturity date for the $1.25 billion revolving credit facility has been extended by one year to November 10, 2031.
- Pricing Grid Modification: The interest rate pricing grid will now be based on the lower of two metrics: the company's existing leverage ratio-based grid or a new grid tied to its corporate credit rating from designated agencies.
- Covenant Update: The minimum interest coverage ratio covenant will no longer apply if the company obtains investment-grade corporate ratings with a stable outlook from at least two designated rating agencies and no default exists.