KBR lifts term loan to $1 billion, sets spread at SOFR plus 225 bps

By Sara Rosenberg

New York, Jan. 9 – KBR Inc. upsized its seven-year term loan B to $1 billion from $800 million and firmed pricing at SOFR plus 225 basis points, the low end of the SOFR plus 225 bps to 250 bps talk, according to a market source.

Also, the company added a step-down to the term loan to SOFR plus 200 bps at less than 2x total net leverage and tightened the original issue discount to 99.75 from 99.5, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months and no CSA.

BofA Securities Inc. is the left lead arranger on the deal.

Commitments are due at noon ET on Wednesday, accelerated from noon ET on Thursday, the source added.

Proceeds will be used to refinance an existing term loan B due 2027 and to pay down revolving credit facility borrowings.

KBR is a Houston-based provider of differentiated, professional services and technologies across a government, defense and industrial base.

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