Troubled US industrial boilermaker, Babcock & Wilcox Enterprises (B&W), has announced a refinancing package that includes improved letter of credit (L/C) availability.

The company obtained the refinancing package in the wake of third quarter 2019 results that showed it was stemming its losses. B&W lost US$47.2 million in that quarter, compared with a loss of US$104.1 million in the third quarter of 2018.

Comprehensive refinancing

The comprehensive debt refinancing agreement provides a US$200 million commitment to fully refinance the existing revolving credit facility.

An additional US$30 million will also be provided to support the company's growth.

L/C details

The company's senior lender syndicate has also agreed to provide a new revolving credit facility with US$30 million of borrowing availability, in addition to increased L/C availability.

The agreement sets a maturity date for the new revolving credit facility and L/Cs of 1 January 2022.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.