HOUSTON, April 25, 2018 /PRNewswire/ -- KBR, Inc. (NYSE:
KBR), a global provider of differentiated professional services and technologies to the Government Services and Hydrocarbons
sectors, announced today that it completed the debt-only refinancing which was announced earlier this year.
KBR has entered into a new Senior Secured Credit Facility in the amount of $2.15 billion. The
components include a $500 million Senior Secured Revolving Line of Credit, a $500 million Performance Letter of Credit Facility, and a $350 million Senior
Secured Delayed Draw Term Loan A all maturing in April 2023, and also a $800
million Senior Secured Term Loan B maturing in April 2025.
Proceeds from the facilities will be used to fund recent M&A and project requirements and to permanently finance existing
revolver borrowings, and will better position KBR's debt capital structure to enable growth and financial flexibility for the
future.
Specifically, KBR will utilize a portion of this financing for the acquisition of Stinger Ghaffarian Technologies, Inc. (SGT)
which is a significant step forward in KBR's strategy to expand its high-tech professional services across NASA and other
Government Services entities and to secure more stable, long term funding sources. In addition, the Term Loan A facility will be
used to fund KBR's loan to the JKC joint venture in order to complete the combined cycle power plant on the Ichthys project.
These facilities extend KBR's maturities, provide attractively priced credit capital to fuel investments for growth, and
provide for a ring-fencing for capital required for the Ichthys project to clarify visibility of anticipated outflows and
inflows.
"Our successful strategy to build a greater base of recurring, low capital intensity services contracts across our portfolio,
coupled with other de-risking actions has provided a more predictable stream of cash flows enabling us to tap into the debt
markets at this time," said KBR President and CEO Stuart Bradie.
KBR expects its gross debt to EBITDA leverage ratio to be approximately 3.0x after funding of the new facility, and expects to
resume a lowering of this ratio over time as has recently been the case with a combination of profit growth, cash generation, and
debt reductions.
Additional details about the refinancing are contained in KBR's recent 8-K which can be found at investors.kbr.com
Bank of America, N.A., BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG Bank, Ltd., The Bank of Nova Scotia, SunTrust Robinson Humphrey, Inc., and BBVA Securities Inc. acted as Joint Lead Arrangers.
About KBR, Inc.
KBR is a global provider of differentiated professional services and technologies across the asset and program life cycle
within the Government Services and Hydrocarbons sectors. KBR employs approximately 34,000 people worldwide (including our joint
ventures), with customers in more than 75 countries, and operations in 40 countries, across three synergistic global
businesses:
- Government Services, serving government customers globally, including capabilities that cover the full life-cycle of
defense, space, aviation and other government programs and missions from research and development, through systems engineering,
test and evaluation, program management, to operations, maintenance, and field logistics
- Technology & Consulting, including proprietary technology focused on the monetization of hydrocarbons (especially
natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining;
gasification; oil and gas consulting; integrity management; naval architecture and proprietary hulls; and downstream
consulting
- Engineering & Construction, including onshore oil and gas; LNG (liquefaction and regasification)/GTL; oil refining;
petrochemicals; chemicals; fertilizers; differentiated EPC; maintenance services (Brown & Root Industrial Services);
offshore oil and gas (shallow-water, deep-water, subsea); floating solutions (FPU, FPSO, FLNG & FSRU) and program
management
KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery
and long term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We
Deliver.
Visit www.kbr.com
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial
performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to
numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ
materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited
to: the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and
legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such
proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the
company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts;
structural changes in the industries in which the company operates; escalating costs associated with and the performance of
fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes
with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property
rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws
related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign
exchange rates and controls; the development and installation of financial systems; increased competition for employees; the
ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are
not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other Securities and Exchange
Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of
operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
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SOURCE KBR, Inc.