Babcock & Wilcox exchanges term loans for preferred stock

Chicago, June 3 – Babcock & Wilcox Enterprises, Inc. announced that it has entered into an agreement with B. Riley Financial Inc. to exchange $73 million of secured term debt for preferred stock, according to a press release.

The company issued B. Riley 2,916,880 shares of the company’s 7.75% series A cumulative perpetual preferred stock with a liquidation price of $25 per share, representing an exchange price of $25 per share plus accrued dividends from May 7, and also paid $850,171 in cash for accrued interest due.

This was all in exchange for a deemed prepayment of $73,330,152 of the company’s existing term loans with B. Riley under the company’s amended and restated credit agreement.

The company has reduced, in total, its secured debt by over $347 million in 2021.

The shares of the preferred stock issued to B. Riley were issued via Regulation D.

The preferred shares trade on the NYSE as “BWPrA.”

Akron, Ohio-based Babcock provides support services to military and civilian customers.

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