Item 1.01. Entry into a Material Definitive Agreement.
On March 29, 2019, Babcock & Wilcox Enterprises, Inc. (“we”, “our” or the "Company") entered into a limited waiver (the “Limited Waiver”) to our existing credit agreement (as amended, the “Credit Agreement”) with Bank of America, N.A., as administrative agent and lender, and the other lenders party thereto. The Limited Waiver waives our compliance with certain covenants in the Credit Agreement, including but not limited to covenants (1) requiring that we maintain a minimum liquidity amount of $40.0 million as a condition to borrowing both at the time of any credit extension request and on the proposed date of the credit extension (as defined in the Credit Agreement), provided that we must maintain a minimum liquidity amount of $35.0 million as a condition to borrowing both at the time of any credit extension request and on the proposed date of the credit extension, (2) requiring that we maintain the specified consolidated interest coverage and senior leverage coverage ratios contained in the Credit Agreement, (3) requiring that we maintain a minimum liquidity amount of $40.0 million as of the last business day of any calendar month, (4) specifying certain contract completion milestones that we are required to meet in connection with one renewable energy project, (5) limiting the amount of certain net losses permitted in connection with renewable energy projects, and (6) requiring our independent registered public accounting firm certify our consolidated financial statements without a going concern qualification. The Limited Waiver also waives certain events of default related to development projects in our Renewables segment. The Limited Waiver will terminate at 5:00 p.m., New York City time, on April 5, 2019 unless earlier terminated upon the occurrence of, among other things, an event of default under the Credit Agreement, our payment of certain fees in connection with certain renewable energy projects or our failure to maintain a minimum liquidity amount of $35.0 million as a condition to borrowing both at the time of any credit extension request and on the proposed date of the credit extension.
Certain of the lenders, 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.