BWX Technologies Announces Proposed $400.0 Million Senior Notes Offering
BWX Technologies, Inc. (NYSE:BWXT) (“BWXT”) announced today that it plans to offer up to $400.0 million aggregate principal
amount of senior notes due 2026 (the “Notes”) in a private transaction exempt from the registration requirements of the Securities
Act of 1933, as amended (the “Act”). The Notes will be guaranteed by each of BWXT’s present and future direct and indirect wholly
owned domestic subsidiaries that is a guarantor under the New Credit Facility (as defined below).
Additionally, in connection with the Notes offering, BWXT intends to enter into an $800.0 million senior secured credit
agreement that includes a $500.0 million revolving credit facility due 2023 (the “New Revolving Credit Facility”), a $50.0 million
senior secured term loan A due 2023 (the “New USD Term Loan”) and a $250.0 million (U.S. dollar equivalent) Canadian dollar senior
secured term loan A due 2023 (the “New CAD Term Loan” and, together with the New Revolving Credit Facility and New USD Term Loan,
the “New Credit Facility”). BWXT intends to use the net proceeds from the offering of the Notes, together with borrowings under the
New Credit Facility, (1) to repay in full all indebtedness outstanding under its existing senior secured credit agreement
consisting of (a) a $400.0 million revolving credit facility, (b) a $300.0 million term loan facility, (c) a $137.5 million (U.S.
dollar equivalent) Canadian dollar term loan facility and (d) a $112.5 million term loan facility, (2) to pay all related fees and
expenses, and (3) for general corporate purposes. There can be no assurance that the offering of the Notes and the entry into the
New Credit Facility will be completed.
The Notes and the related guarantees have not been registered under the Act or the securities laws of any other place and may
not be offered or sold in the United States absent registration or an applicable exemption. The Notes will be offered only to
persons reasonably believed to be qualified institutional buyers under Rule 144A and to persons outside the United States under
Regulation S.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any
offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This
press release is being issued pursuant to and in accordance with Rule 135c under the Act.
Forward-Looking Statements
BWXT cautions that this press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including without limitation, statements regarding the anticipated offering of the Notes, the
potential entry into the New Credit Facility, the repayment of the existing borrowings under the senior secured credit agreement
and the other expected use of proceeds. These forward-looking statements are based on management’s current expectations and involve
a number of risks and uncertainties, including, among other things, material adverse changes in economic or industry conditions
generally, market demand for the Notes, and the ability to obtain financing on attractive terms. If one or more of these or other
risks materialize, actual results may vary materially from those expected. For a more complete discussion of other risk factors,
see BWXT’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended
December 31, 2017 and subsequent Quarterly Reports on Form 10-Q. BWXT cautions not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking
statement, except to the extent required by applicable law.
About BWXT
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the
U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities
and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial
nuclear power industry. With approximately 6,100 employees, BWXT has nine major operating sites in the U.S. and Canada. In
addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and two NASA
facilities.
Investor:
Alan Nethery, (980) 365-4300
Vice President and Chief Investor Relations Officer
investors@bwxt.com
or
Media:
Jud Simmons, (434) 522-6462
Director, Media & Public Relations
hjsimmons@bwxt.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180514005657/en/