Shaw Group expands credit terms for $1.45 billion five-year facility

By Susanna Moon

Chicago, June 16 - Shaw Group Inc. said it amended and expanded its credit agreement to a $1.45 billion five-year unsecured credit facility, which may be drawn for performance letters of credit.

Of that facility, $1.25 billion is available for financial letters of credit and borrowings for working capital and general corporate purposes.

Under the terms, Shaw may seek additional unsecured commitments of up to a total of $500 million under this facility or other supplemental credit facilities, according to a company press release.

Shaw also may pledge up to $300 million of its unrestricted cash to secure additional letters of credit, subject to certain conditions, in addition to amounts available under the credit facility.

"The expansion of our credit facility gives Shaw increased financial flexibility and supports our ongoing growth initiatives," Brian K. Ferraioli, Shaw's executive vice president and chief financial officer, said in the release.

Shaw Group is a Baton Rouge, La.-based provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for clients in the energy, chemical, environmental, infrastructure and emergency response markets.

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