KBR lifts spread on $800 million term loan B to Libor plus 375 bps

By Sara Rosenberg

New York, March 29 – KBR Inc. raised pricing on its $800 million seven-year covenant-light term loan B to Libor plus 375 basis points from talk in the range of Libor plus 300 bps to 325 bps, according to a market source.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $2.2 billion of senior secured credit facilities (B1/B+) also include a $400 million five-year delayed-draw term loan A, a $500 million five-year revolver and a $500 million five-year performance letter-of-credit facility.

Bank of America Merrill Lynch is the left lead arranger on the deal.

Proceeds will be used to finance the $355 million acquisition of SGT from Kamco Holdings, to refinance existing revolver borrowings, to fund KBR’s share in a joint venture and for general corporate purposes.

KBR is a Houston-based provider of full life-cycle professional services and technologies supporting the government services and hydrocarbons markets.

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