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Delaware
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001-36876
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47-2783641
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of Each Class
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Trading Symbol
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Name of Each Exchange on Which Registered
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Common Stock, par value $0.01 per share
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BW
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New York Stock Exchange
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•
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0.50:1.00 for the quarter ending December 31, 2020
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•
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0.50:1.00 for the quarter ending March 31, 2021
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•
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0.80:1.00 for the quarter ending June 30, 2021
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•
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1.00:1.00 for the quarter ending September 30, 2021
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•
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1.10:1.00 for the quarter ending December 31, 2021
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•
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1.25:1.00 for the quarter ending March 31, 2022 and the last day of each fiscal quarter ending thereafter.
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•
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7.75:1.00 for the quarter ending December 31, 2020
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•
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7.75:1.00 for the quarter ending March 31, 2021
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•
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4.25:1.00 for the quarter ending June 30, 2021
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•
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3.75:1.00 for the quarter ending September 30, 2021
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•
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3.00:1.00 for the quarter ending December 31, 2021
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•
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2.25:1.00 for the quarter ending March 31, 2022 and the last day of each fiscal quarter ending thereafter.
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Exhibit No.
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Description
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Amendment No. 1 to Amended and Restated Credit Agreement dated October 30, 2020.
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BABCOCK & WILCOX ENTERPRISES, INC.
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Date:
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November 5, 2020
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By:
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/s/ Louis Salamone
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Louis Salamone
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Executive Vice President, Chief Financial Officer and Chief Accounting Officer
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1.
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Amendments to the Credit Agreement.
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(a)
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The definition of “Commitment Reduction Amount” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:
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(b)
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Clause (b)(viii) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:
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(c)
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The definition of “Financial Covenant Debt” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below to read in its entirety as follows:
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(c)
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Section 7.16 (Financial Covenants) of the Credit Agreement shall be amended and restated in its entirety as follows:
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Fiscal Quarters Ending
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Minimum Interest Coverage Ratio
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December 31, 2020
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0.50:1:00
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March 31, 2021
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0.50:1:00
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June 30, 2021
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0.80:1:00
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September 30, 2021
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1.00:1:00
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December 31, 2021
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1.10:1.00
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March 31, 2022 and the last day of each Fiscal Quarter ending thereafter
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1.25:1:00
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Fiscal Quarters Ending
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Maximum Senior Leverage Ratio
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December 31, 2020
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7.75:1:00
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March 31, 2021
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7.75:1:00
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June 30, 2021
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4.25:1:00
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September 30, 2021
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3.75:1:00
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December 31, 2021
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3.00:1.00
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March 31, 2022 and the last day of each Fiscal Quarter ending thereafter
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2.25:1:00
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2.
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Effectiveness; Conditions Precedent.
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(a)
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the Administrative Agent shall have received each of the following documents or instruments in form and substance acceptable to the Administrative Agent:
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(b)
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counterparts of this Amendment executed by the Loan Parties, the Administrative Agent, and the Required Lenders;
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(c)
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a certificate of the chief financial officer or treasurer of the Borrower certifying that as of the Amendment No. 1 Effective Date (A) all of the representations and warranties in this Amendment are true and correct in all material respects (or, to the extent any such representation and warranty is modified by a materiality or Material Adverse Effect standard, in all respects) as of such date (except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects (or, to the extent any such representation and warranty is modified by a materiality or Material Adverse Effect standard, in all respects) as of such earlier date), (B) no Default shall exist, or would result from the occurrence of the Amendment No. 1 Effective Date and (C) that since December 31, 2019, there have not occurred any facts, circumstances, changes, developments or events which, individually or in the aggregate, have constituted or would reasonably be expected to result in, a Material Adverse Effect; and
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(d)
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a solvency certificate, executed by a Responsible Officer of the Borrower in form and substance reasonably acceptable to the Administrative Agent, which, among other things, shall certify that the Borrower will be Solvent as of the date hereof;
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(b)
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without prejudice to, or limiting the Borrower’s obligations under, Section 10.04 (Expenses; Indemnity; Damage Waiver) of the Credit Agreement, all outstanding fees, costs and expenses due to the Administrative Agent and the Lenders, including on account of Agent’s Legal Advisor and FTI, shall have been paid in full to the extent that the Borrower has received an invoice therefor (with reasonable and customary supporting documentation) at least two Business Days prior to the Amendment No. 1 Effective Date (without prejudice to any post-closing settlement of such fees, costs and expenses to the extent not so invoiced); and
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(c)
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each of the representations and warranties made by the Borrower in Section 3 hereof shall be true and correct.
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3.
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Representations and Warranties.
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(a)
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that both immediately prior to and immediately after giving effect to this Amendment, no Default or Event of Default exists;
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(b)
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the representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as of the date hereof (except to the extent that such representations and warranties (i) specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and
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(c)
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the execution, delivery and performance by the Borrower and the other Loan Parties of this Amendment and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate, limited liability company or partnership action, including the consent of shareholders, partners and members where required, do not contravene any Loan Party or any of its Subsidiaries’ respective Constituent Documents, do not violate any Requirement of Law applicable to any Loan Party or any order or decree of any Governmental Authority or arbiter applicable to any Loan Party and do not require the consent of, authorization by, approval of, notice to, or filing or registration with, any Governmental Authority or any other Person in order to be effective and enforceable;
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(d)
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this Amendment has been duly executed and delivered on behalf of the Borrower and the other Loan Parties;
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(e)
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this Amendment constitutes a legal, valid and binding obligation of the Borrower and the other Loan Parties enforceable against the Borrower and the other Loan Parties in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, Debtor Relief Laws or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity; and
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(f)
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as of the date hereof, all Liens, security interests, assignments and pledges encumbering the Collateral, created pursuant to and/or referred to in the Credit Agreement or the other Loan Documents, are valid, enforceable, duly perfected to the extent required by the Loan Documents, non-avoidable, first priority liens, security interests, assignments and pledges (subject to Liens permitted by Section
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4.
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Consent, Acknowledgement and Reaffirmation of Indebtedness and Liens.
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(a)
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expressly consents to the amendments and modifications to the Credit Agreement effected hereby;
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(b)
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expressly confirms and agrees that, notwithstanding the effectiveness of this Amendment, each Loan Document to which it is a party is, and all of the obligations and liabilities of such Loan Party to the Administrative Agent, the Lenders and each other Secured Party contained in the Loan Documents to which it is a party (in each case, as amended and modified by this Amendment), are and shall continue to be, in full force and effect and are hereby reaffirmed, ratified and confirmed in all respects and, without limiting the foregoing, agrees to be bound by and abide by and operate and perform under and pursuant to and comply fully with all of the terms, conditions, provisions, agreements, representations, undertakings, warranties, indemnities, guaranties, grants of security interests and covenants contained in the Loan Documents;
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(c)
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to the extent such party has granted Liens or security interests on any of its properties or assets pursuant to any of the Loan Documents to secure the prompt and complete payment, performance and/or observance of all or any part of its Obligations to the Administrative Agent, the Lenders, and/or any other Secured Party, acknowledges, ratifies, remakes, regrants, confirms and reaffirms without condition, all Liens and security interests granted by such Loan Party to the Administrative Agent for their benefit and the benefit of the Lenders, pursuant to the Credit Agreement and the other Loan Documents, and acknowledges and agrees that all of such Liens and security interests are intended and shall be deemed and construed to continue to secure the Obligations under the Loan Documents, as amended, restated, supplemented or otherwise modified and in effect from time to time, including but not limited to, the Loans made by, and Letters of Credit provided by, the Administrative Agent and the Lenders to the Borrower and/or the other Loan Parties under the Credit Agreement, and all extensions renewals, refinancings, amendments or modifications of any of the foregoing;
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(d)
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agrees that this Amendment shall in no manner impair or otherwise adversely affect any of the Liens and security interests granted in or pursuant to the Loan Documents; and
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(e)
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acknowledges and agrees that: (i) the Guaranty and any obligations incurred thereunder, have been provided in exchange for “reasonably equivalent value” (as such term is used under the Bankruptcy Code and applicable state fraudulent transfer laws) and “fair consideration” (as such term is used under applicable state fraudulent conveyance laws) and (ii) each grant or perfection of a Lien or security interest on any Collateral provided in connection with Loan Documents, this Amendment and/or any negotiations with the Administrative Agent and/or the Lenders in connection with a “workout” of the Obligations is intended to constitute, and does constitute, a “contemporaneous exchange for new value” (as such term is used in Section 547 of the Bankruptcy Code).
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5.
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Releases; Waivers.
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(a)
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By its execution hereof, each Loan Party (on behalf of itself and its Affiliates) and its successors-in-title, legal representatives and assignees and, to the extent the same is claimed by right of, through or under any Loan Party, for its past, present and future employees, agents, representatives, officers, directors, shareholders, and trustees (each, a “Releasing Party” and collectively, the “Releasing Parties”), does hereby remise, release and discharge, and shall be deemed to have forever remised, released and discharged, the Administrative Agent, the Lenders and each of the other Secured Parties, and the Administrative Agent’s, each Lenders’ and each other Secured Party’s respective successors-in-title, legal representatives and assignees, past, present and future officers, directors, affiliates, shareholders, trustees, agents, employees, consultants, experts, advisors, attorneys and other professionals and all other persons and entities to whom any of the foregoing would be liable if such persons or entities were found to be liable to any Releasing Party, or any of them (collectively hereinafter, the “Lender Parties”), from any and all manner of action and actions, cause and causes of action, claims, charges, demands, counterclaims, suits, covenants, controversies, damages, judgments, expenses, liens, claims of liens, claims of costs, penalties, attorneys’ fees, or any other compensation, recovery or relief on account of any liability, obligation, demand or cause of action of whatever nature, whether in law, equity or otherwise (including, without limitation, any so called “lender liability” claims, claims for subordination (whether equitable or otherwise), interest or other carrying costs, penalties, legal, accounting and other professional fees and expenses and incidental, consequential and punitive damages payable to third parties, or any claims arising under 11 U.S.C.
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(b)
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By its execution hereof, each Loan Party hereby (i) acknowledges and confirms that there are no existing defenses, claims, subordinations (whether equitable or otherwise), counterclaims or rights of recoupment or setoff against the Administrative Agent, the Lenders or any other Secured Parties in connection with the Obligations or in connection with the negotiation, preparation, execution, performance or any other matters relating to the Credit Agreement, the other Loan Documents or this Amendment and (ii) expressly waives any setoff, counterclaim, recoupment, defense or other right that such Loan Party now has against the Administrative Agent, any Lender or any of their respective affiliates, whether in connection with this Amendment, the Credit Agreement and the other Loan Documents, the transactions contemplated by this Amendment or the Credit Agreement and the Loan Documents, or any agreement or instrument relating thereto.
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6.
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Entire Agreement.
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7.
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Full Force and Effect of Credit Agreement.
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8.
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Counterparts; Effectiveness.
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9.
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Governing Law; Jurisdiction; Waiver of Jury Trial.
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10.
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Severability.
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11.
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References.
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12.
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Successors and Assigns.
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