Shaw amends loan, raising letter-of-credit availability

By Sara Rosenberg

New York, Oct. 20 - Shaw Group Inc. amended its credit facility, increasing its letter-of-credit availability by $203 million, according to a news release.

The increase came from being allowed to use up to $200 million of its unrestricted to collateralize letters-of-credit in addition to the current facility, and through an incremental commitment of $3 million to the existing facility, bringing the total commitments to $1.053 billion until April 25, 2010.

At the time of each collateral pledge, and immediately thereafter, Shaw has to have an unrestricted cash balance of at least $500 million.

The amendment also extends the term of the facility by one year to April 25, 2011 for $829 million of the existing bank commitments and retained the total approved capacity of $1.25 billion available for additional commitments without further consent.

Shaw is a Baton Rouge, La., provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services to the energy, chemicals, environmental, infrastructure and emergency response markets.

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