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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 30, 2023
BABCOCK & WILCOX ENTERPRISES, INC. |
(Exact name of registrant as specified in its charter) |
Delaware |
|
001-36876 |
|
47-2783641 |
(State or other jurisdiction of
incorporation) |
|
(Commission File Number) |
|
(IRS Employer Identification No.) |
1200 East Market Street
Suite 650
Akron, Ohio |
|
44305 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s Telephone Number, including
Area Code: (330) 753-4511
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title
of Each Class |
Trading
Symbol |
Name
of Each Exchange on which Registered |
Common stock, $0.01 par value per share |
BW |
New York Stock Exchange |
8.125% Senior Notes due 2026 |
BWSN |
New York Stock Exchange |
6.50% Senior Notes due 2026 |
BWNB |
New York Stock Exchange |
7.75% Series A Cumulative Perpetual Preferred Stock |
BW PRA |
New York Stock Exchange |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities
Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01 Entry into a Material Definitive Agreement
Amendment to Letter of Credit Agreement
On November 30, 2023, Babcock &
Wilcox Enterprises, Inc. (the “Company”) with certain subsidiaries of the Company as guarantors (the “Guarantors”),
certain lenders from time to time party to the Revolving Credit Agreement (as defined below), and PNC Bank, National Association (“PNC”),
as issuer under the Letter of Credit Issuance and Reimbursement and Guaranty Agreement, dated as of June 30, 2021 (as amended, restated,
modified and/or supplemented from time to time, the “Letter of Credit Agreement”) and agent under that Revolving Credit Agreement,
entered into the Second Amendment to Letter of Credit Issuance and Reimbursement and Guaranty Agreement; Partial Release of Cash Collateral;
and Agreement Regarding Revolving Credit, Guaranty and Security Agreement, dated as of November 30, 2023 (the “Second Amendment
to Letter of Credit Agreement and Revolving Credit Agreement”). The Second Amendment to Letter of Credit Agreement and Revolving
Credit Agreement, among other things, amends the terms of the Letter of Credit Agreement to (i) reduce the Commitment Amount (as defined
in the Letter of Credit Agreement) from $110,000,000 to $100,000,000, (ii) in connection with such reduction, cause PNC as issuer to release
$10,000,000 cash collateral (the “Pledged Cash Collateral”) previously pledged by The Babcock & Wilcox Company, an affiliate
of the Company, and remit such cash to PNC, in its capacity as administrative agent under the Revolving Credit Agreement, as repayment
of and applied to the principal balance of the Revolving Advances (as defined in the Revolving Credit Agreement) under the Revolving Credit,
Guaranty, and Security Agreement dated June 30, 2021 (as amended, restated, modified and/or supplemented from time to time, the “Revolving
Credit Agreement”), and (iii) upon the satisfaction of certain conditions, further reduce the Commitment Amount from $100,000,000
to $90,000,000 and release any cash collateral then on deposit in excess of $90,000,000 to MSD PCOF Partners XLV, LLC, in its capacity
as issuer under the Reimbursement, Guaranty and Security Agreement, dated as of June 30, 2021.
Certain of the parties under the
Letter of Credit Agreement, as well as certain of their respective affiliates, have performed and may in the future perform for the Company
and its subsidiaries, various commercial banking, investment banking, lending, underwriting, trust services, financial advisory and other
financial services, for which they have received and may in the future receive customary fees and expenses.
Amendment to Revolving Credit
Agreement
On November 30, 2023, the Company
and the Guarantors, certain lenders from time to time party to the Revolving Credit Agreement and PNC, as administrative agent and swing
loan lender under the Revolving Credit Agreement, entered into the Second Amendment to Letter of Credit Agreement and Revolving Credit
Agreement. The Second Amendment to Letter of Credit Agreement and Revolving Credit Agreement amends the terms of the Revolving Credit
Agreement to establish a permanent reserve of $5,000,000 against the Maximum Revolving Advance Amount and the Formula Amount (each as
defined in the Revolving Credit Agreement) if the Company’s obligations under the Revolving Credit Agreement and Letter of Credit
Agreement are not paid in full by December 31, 2023.
The Company paid an amendment fee
of $100,000 to PNC in consideration of the Second Amendment to Letter of Credit Agreement and Revolving Credit Agreement. Certain of the
lenders under the Revolving Credit Agreement, as well as certain of their respective affiliates, have performed and may in the future
perform for the Company and its subsidiaries, various commercial banking, investment banking, lending, underwriting, trust services, financial
advisory and other financial services, for which they have received and may in the future receive customary fees and expenses.
Item 2.03 Creation of a Direct Financial Obligation
or an Obligation under an Off- Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report
on Form 8-K is incorporated herein by reference into this Item 2.03.
Signatures
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
BABCOCK & WILCOX ENTERPRISES, INC. |
|
|
|
|
|
|
December 6, 2023 |
By: |
/s/ Louis Salamone |
|
|
Louis Salamone |
|
|
Executive Vice President, Chief Financial Officer and Chief Accounting Officer |
|
|
(Principal Accounting Officer and Duly Authorized Representative) |
v3.23.3
Cover
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Nov. 30, 2023 |
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Document Type |
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Document Period End Date |
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|
Entity File Number |
001-36876
|
Entity Registrant Name |
BABCOCK & WILCOX ENTERPRISES, INC.
|
Entity Central Index Key |
0001630805
|
Entity Tax Identification Number |
47-2783641
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
1200 East Market Street
|
Entity Address, Address Line Two |
Suite 650
|
Entity Address, City or Town |
Akron
|
Entity Address, State or Province |
OH
|
Entity Address, Postal Zip Code |
44305
|
City Area Code |
330
|
Local Phone Number |
753-4511
|
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Common Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Common stock, $0.01 par value per share
|
Trading Symbol |
BW
|
Security Exchange Name |
NYSE
|
8.125% Senior Notes due 2026 [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
8.125% Senior Notes due 2026
|
Trading Symbol |
BWSN
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Security Exchange Name |
NYSE
|
6.50% Senior Notes due 2026 [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
6.50% Senior Notes due 2026
|
Trading Symbol |
BWNB
|
Security Exchange Name |
NYSE
|
7.75% Series A Cumulative Perpetual Preferred Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
7.75% Series A Cumulative Perpetual Preferred Stock
|
Trading Symbol |
BW PRA
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Security Exchange Name |
NYSE
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