Shaw Group announces $1.08 billion equivalent private placement of yen-denominated 6.5-year bonds

By Paul A. Harris

St. Louis, Oct. 4 - The Shaw Group Inc. announced on Wednesday that it is conducting a private placement of Japanese yen-denominated bonds in the amount of $1.08 billion equivalent to help finance its portion of the $5.4 billion acquisition of Westinghouse Electric Co. from British Nuclear Fuels Ltd.

The deal bond deal is being marketed in Japan and outside the United States, the release added.

The limited-recourse bonds are expected to have a term of about 6.5 years.

Also on Wednesday, citing the acquisition Standard & Poor's placed Shaw's BB corporate credit rating on CreditWatch with negative implications.

The acquisition, which will be conducted through Shaw's 100% owned special purpose acquisition subsidiary, Nuclear Energy Holdings, LLC, is expected to close in October..

Joining Shaw in acquiring Westinghouse is Toshiba Corp. (BBB/Watch negative from S&P).

At closing Toshiba will own 77% of each of the Westinghouse Acquisition Cos., Nuclear Energy Holdings will own 20% and Ishikawajima-Harima Heavy Industries Co., Ltd. of Japan will own 3%.

The transaction is conditioned in part upon the successful placement of the bonds by Shaw.

No syndicate names were disclosed in the Wednesday press release, and the company did not return a telephone call from Prospect News.

Shaw Group is a provider of engineering, procurement, construction, technology, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. It has headquarters in Baton Rouge, La.

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