KBR gets $400 million advance under revolving credit facility

By Marisa Wong

Morgantown, W.Va., July 5 – KBR, Inc. received a $400 million advance under its credit agreement on July 1, according to an 8-K filing with the Securities and Exchange Commission.

The company obtained the advance in connection with its acquisition of Wyle Inc., completed last Friday.

The advance bears interest at 1.841555% per year for the first month. After that, the rate will reset each month to one-month Libor plus an applicable margin of 137.5 basis points to 175 bps, based on the company’s ratio of consolidated debt to consolidated EBITDA.

KBR entered into its $1 billion amended and restated revolving credit agreement on Sept. 25, 2015 with Citibank, NA as administrative agent.

The revolver expires on Sept. 25, 2020 with two one-year extension options and includes an up to $500 million accordion feature, as previously reported.

The credit agreement contains financial covenants requiring maintenance of a ratio of consolidated debt to consolidated EBITDA of 3.5 to 1 and a minimum consolidated net worth of $1.2 billion plus 50% of consolidated net income and 100% of any increase in shareholders equity attributable to the sale of equity securities.

KBR is an engineering, construction and services company based in Houston.

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