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KBR enters commitment letter for $2.2 billion of credit facilities
By Sarah Lizee
Olympia, Wash., Feb. 23 – KBR, Inc. entered into a commitment letter on Thursday with Bank of America, NA and Merrill Lynch, Pierce, Fenner & Smith Inc. for $2.2 billion in senior secured credit facilities, according to an 8-K filing with the Securities and Exchange Commission.
The facilities will be comprised of a $400 million five-year term loan A facility, an $800 million seven-year term loan B facility, a $500 million five-year revolving credit facility available for revolving loans and performance letters of credit, which will include a $150 million sublimit for the issuance of standby financial letters of credit and commercial letters of credit and a $25 million sublimit for swingline loans, and a $500 million five-year performance letter of credit facility.
Bank of America is the administrative agent and will lend the company all of the new senior credit facilities. Merrill Lynch is the lead arranger and book manager and will form a syndicate of financial institutions for the facilities.
Proceeds will be used to repay the company’s existing credit facility in full, to pay the consideration for the company’s $355 million acquisition of SGT, Inc. to Kamco Holdings and to replace, backstop or continue some letters of credit outstanding under the company’s and its subsidiaries’ existing credit facilities.
Proceeds will also be used to fund payments through its 30% ownership of a joint venture with JGC Corp. and Chiyoda Corp. in connection with the completion of the Ichthys Onshore LNG export facility in Darwin, Australia.
KBR is an engineering, construction and services company based in Houston.
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