CH2M HILL downsizes revolver to $925 million, makes other amendments

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – CH2M HILL Cos., Ltd. downsized its revolving credit facility to $925 million from $1.1 billion under a Sept. 30 credit agreement amendment aimed at providing financial and operational flexibility, according to an 8-K filing with the Securities and Exchange Commission.

Other changes to the revolver include

• Increasing interest margins and commitment fees, both of which are based on CH2M’s consolidated leverage ratio;

• Reducing the standby letter-of-credit subfacility to $500 million from $750 million;

• Modifying the calculation of consolidated adjusted EBITDA to allow CH2M to exclude certain cash and non-cash charges related to restructuring charges and project costs and losses for purposes of determining the consolidated leverage ratio;

• Limiting the amount CH2M may spend to repurchase its common stock in connection with its employee stock ownership program to up to $75 million during the three-quarter period ending March 31, 2017 less the amount of any legally required repurchases of common stock held in benefit plans;

• Limiting CH2M’s ability to pay cash dividends on preferred stock or make acquisitions of other companies to no more than 10% of consolidated adjusted EBITDA; and

• Eliminating a provision allowing CH2M to use proceeds from asset sales to repurchase common or preferred stock.

The revolver continues to include a $300 million sublimit for multicurrency borrowings and a $50 million sublimit for swingline loans.

The company may request to increase availability by up to $200 million.

The revolver is available to CH2M HILL and its subsidiaries to refinance certain debt and for general corporate purposes.

Wells Fargo Bank, NA is the administrative agent and swingline lender.

The engineering and construction company is based in Englewood, Colo.

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