Shaw Group amends loan, increasing size and reducing covenant restrictions

By Sara Rosenberg

New York, Oct. 17 - The Shaw Group Inc. amended its credit facility and has received commitments to increase its credit facility to $300 million from $250 million. Furthermore, under the amendment restrictions in various financial covenants have been reduced.

The amendment will take effect upon completion of a $200 million common stock offering that was announced Friday.

"We are very happy with the expansion of our credit facility and the amendment to our covenants. This will increase our working capital resources, providing the company with greater liquidity and enhanced flexibility for running our business and executing our strategic plan," stated Robert L. Belk, executive vice president and chief financial officer, in a news release.

"Combined with the other actions we have taken to strengthen our balance sheet, we will be better positioned to capitalize on the improving markets for our services and ultimately provide the best platform on which to build long-term shareholder value."

Shaw is a Baton Rouge, La. provider of comprehensive services to the power, process and environmental and infrastructure industries.

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