Babcock & Wilcox issues new senior secured notes

Babcock & Wilcox Enterprises , Inc. (NYSE:BW) has entered into a material definitive agreement resulting in the issuance of new senior secured notes, as reported in a recent SEC filing. On Monday, the company, which specializes in heating equipment manufacturing and carries a total debt of $536.14 million, completed an exchange transaction with two institutional investors. This transaction involved the exchange of approximately $48 million and $84 million aggregate principal amounts of the company’s existing senior notes due 2026 for approximately $101 million aggregate principal amount of newly-issued 8.75% Senior Secured Second Lien Notes due 2030.

The new notes were issued under an Indenture dated May 19, 2025, between Babcock & Wilcox (NYSE:BWXT), its subsidiary guarantors, and GLAS Trust Company LLC, serving as trustee and collateral agent. These notes are backed by the company’s assets and are subject to an intercreditor agreement that prioritizes the repayment of existing obligations under the company’s Credit Agreement and other debt instruments.

Interest on the new notes will accrue at a rate of 8.75% per annum, with semi-annual payments commencing December 30, 2025, and will mature on June 30, 2030. The company retains the right to redeem the notes after May 19, 2026, at a redemption price equal to the principal amount plus accrued interest.

The Indenture includes covenants limiting the company’s ability to incur additional debt or liens and contains standard events of default provisions. The transaction also led to an amendment to the company’s Credit Agreement, extending its maturity date under certain conditions.

This financial maneuver is part of the company’s broader strategy to manage its debt portfolio. The information provided in this article is based on Babcock & Wilcox Enterprises , Inc.’s SEC filing.

In other recent news, Babcock & Wilcox Enterprises reported a notable surge in revenue for the first quarter of 2025, reaching $181.2 million, which exceeded analyst forecasts of $159.9 million. Despite the revenue growth, the company experienced a larger-than-expected loss per share of $0.26, missing the projected loss of $0.14. This financial update reflects the company’s ongoing efforts to navigate its capital structure and refinancing strategies amidst a challenging global trade environment. Additionally, DA Davidson maintained a Neutral rating on Babcock & Wilcox with a price target of $1.00, emphasizing the importance of the company’s refinancing efforts and the potential impact of global trade discussions. The firm acknowledged that successful refinancing could positively influence the company’s stock. Furthermore, Babcock & Wilcox is making progress with its BrightLoop hydrogen technology project, with production anticipated by mid-2026. The company’s backlog and bookings showed strong growth, indicating robust demand for its technologies and services. These developments highlight Babcock & Wilcox’s strategic focus on addressing financial challenges while capitalizing on global demand for its offerings.

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