Babcock & Wilcox Enterprises, Inc. ("B&W") announced that on February 10, 2021 it priced an underwritten public offering of $120 million aggregate principal amount of 8.125% senior notes due 2026. B&W has granted the underwriters a 30-day option to purchase up to an additional $5 million aggregate principal amount of senior notes in connection with the offering. The offering is expected to close on February 12, 2021, subject to customary closing conditions.
B&W and the senior notes both received a rating of BB+ from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The Company has applied to list the notes on NYSE under the symbol “BWSN” and expects the notes to begin trading within 30 business days of the closing date of this offering, if approved.
In addition to the public offering, B. Riley Financial, Inc. is exchanging $35 million of its existing Tranche A term loan for $35 million principal amount of senior notes in a concurrent private offering. Following the completion of the offerings, the interest rate on the remaining Tranche A term loan balance will be reduced to an interest rate of 6.625%, compared to its current rate of 12%.
The Company expects to use the net proceeds of this offering to support clean energy growth initiatives, substantially pay down its revolving credit facility and permanently reduce the facility size by 75% of the senior note value exclusive of the value of the B. Riley Financial term loan exchange.
B. Riley Securities, Inc. is acting as lead book-running manager for the offering. D.A. Davidson & Co., Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., and National Securities Corporation are acting as joint book-running managers for the offering. Aegis Capital Corp., Boenning & Scattergood, Inc., Huntington Securities, Inc. and Kingswood Capital Markets, division of Benchmark Investments, Inc. are acting as co-managers for the offering.
