HOUSTON, Nov. 24, 2021 /PRNewswire/ — KBR (NYSE: KBR) announced today that on Nov. 18, 2021, the company has successfully completed the fifth amendment to its April 25, 2018 credit agreement, as previously amended.
Following a strategic shift in the company’s business mix, consistent performance against long-term financial goals, improvement in corporate creditworthiness and continued resolution of legacy issues, the change measurably improves company agility and lowers costs of the company. debt service.
“This change marks another milestone in the evolution of our capital structure and reflects the company’s shift towards delivering high-quality differentiated solutions and technologies in growing, attractive end markets,” said Stuart Bradie, KBR President and CEO. “Building on the accelerating momentum across the company, KBR has significant flexibility in capital deployment as we look ahead to 2025 and beyond.”
The amendment increases capacity and flexibility under certain financial and negative covenants, allows the netting of unlimited cash up to a specified limit for the calculation of the leverage ratio, reduces the interest rate payable and the applicable margin rate for the Term Loan A Facility and the revolving credit facility, and extends the maturity date of the Term Loan A Facility and the revolving credit facility from February 2025 to November 2026.
For more information, see the full amendment to the credit agreement, included as Exhibit 10.1 to the Company’s current report on Form 8-K, filed with the U.S. Securities and Exchange Commission on November 24, 2021 and available on the Company’s website.
We provide scientific, technological and engineering solutions to governments and businesses around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.
KBR prides itself on partnering with its customers around the world to provide technology, value-added services and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR we deliver.
Statements in this press release that are not historical statements, including statements about future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to many risks and uncertainties, many of which are beyond the company’s control and which could cause actual results to differ materially from those expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the significant adverse effects on the economic and market conditions of the COVID-19 pandemic and the Company’s ability to respond to the resulting challenges and business disruption; the recent disruption of the global energy market; the company’s ability to manage its liquidity; the results of and publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; possible adverse proceedings by such authorities and possible adverse results and consequences of such proceedings; changes in capital expenditures 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 sectors in which the company operates; escalating costs associated with and the execution of fixed-fee projects and the Company’s ability to control its costs under its contracts; claim negotiations and contract disputes with the company’s customers; changes in the demand 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 income tax laws; unstable political conditions, war and the consequences of terrorism; foreign operations and exchange rates and controls; the development and installation of financial systems; the possibility of cyber and malware attacks; increased competition for workers; the ability to successfully complete and integrate acquisitions; and activities of joint ventures, including joint ventures that are not controlled by the company.
The Company’s most recently filed annual report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other filings of the U.S. Securities and Exchange Commission discuss some of the important risk factors the Company has identified that could affect on its activities, results of operations and financial condition. Except as required by law, the company assumes no obligation to publicly revise or update any forward-looking statements for any reason.
SOURCE KBR, Inc.