KBR enters $2.15 billion credit facility in four tranches

By Wendy Van Sickle

Columbus, Ohio, April 25 – KBR Inc. entered into a new $2.15 billion senior secured credit facility, which includes a $500 million revolving line of credit, a $500 million performance letter of credit facility and a $350 million delayed-draw term loan, each maturing in April 2023, as well as an $800 million covenant light term loan B due in April 2025, according to a press release.

Proceeds will be used to fund recent merger and acquisition and project requirements and to permanently finance existing revolver borrowings, according to the release.

KBR expects its gross debt to EBITDA leverage ratio to be about 3 times after funding of the new facility.

Bank of America, NA, BNP Paribas Securities Corp., Citigroup Global Markets Inc., MUFG Bank, Ltd., Bank of Nova Scotia, SunTrust Robinson Humphrey, Inc. and BBVA Securities Inc. acted as joint lead arrangers.

KBR is a Houston-based provider of full life-cycle professional services and technologies supporting the government services and hydrocarbons markets.

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