KBR (NYSE: KBR) announced today that on November 18, 2021, the company successfully closed the fifth amendment to its credit agreement dated April 25, 2018, as previously amended.
Following a strategic shift in the company’s business mix, consistent performance against long-term financial targets, improvement in corporate credit ratings, and the continued resolution of legacy matters, the amendment measurably improves the company’s flexibility and reduces its debt service cost.
“This amendment marks another milestone in our capital structure evolution and reflects the company’s shift toward delivery of high-end differentiated solutions and technologies in growing, attractive end markets,” said Stuart Bradie, KBR President and CEO. “Building on accelerating momentum across the business, KBR has significant capital deployment flexibility as we look ahead to 2025 and beyond.”
The amendment increases capacity and flexibility under certain financial and negative covenants, permits the netting of unrestricted cash up to a specified cap for purposes of calculating the leverage ratio, reduces the interest rate payable and applicable margin pricing grid for the term loan A facility and the revolving credit facility, and extends the maturity date of the term loan A facility and the revolving credit facility from February 2025 to November 2026.
For additional information, see the full amendment to the credit agreement included as Exhibit 10.1 to the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on November 24, 2021 and available on the company’s website.