New Issue: KBR taps market for $250 million eight-year notes at par to yield 4¾%

By Paul A. Harris

Portland, Ore., Sept. 16 – KBR, Inc. priced a $250 million issue of eight-year senior notes (B1/B+) at par to yield 4¾% on Wednesday, according to market sources.

The yield printed at the tight end of the 4¾% to 5% yield talk. Early guidance was in the high 4% to 5% area.

BofA Securities Inc. was the left bookrunner.

The Houston-based engineering, procurement and construction company plans to use the proceeds, along with cash on balance sheet, a draw on its revolver and proceeds from the sale of receivables under its receivables facility to finance the acquisition of Centauri Platform Holdings, LLC. Any remaining proceeds will be used for general corporate purposes.

Issuer:	KBR, Inc.
Amount:	$250 million
Maturity:	Sept. 30, 2028
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	BBVA Securities Inc., BNP Paribas Securities Corp., Capital One Securities Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., MUFG, Regions Securities LLC, Scotia Capital (USA) Inc. and Truist Securities Inc.
Co-managers:	HSBC Securities (USA) Inc., Santander Investment Securities Inc., SMBC Nikko Securities America Inc. and Standard Chartered Bank
Coupon:	4¾%
Price:	Par
Yield:	4¾%
Spread:	422 bps
Call protection:	Three years
Trade date:	Sept. 16
Settlement date:	Sept. 30
Ratings:	Moody's: B1
	S&P: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	4¾% to 5%
Marketing:	Roadshow

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