On May 8, 2025, Babcock & Wilcox Enterprises, Inc. executed a significant debt exchange, converting $131.8 million aggregate principal amount of its 2026 Senior Notes. These notes were exchanged for $100.8 million aggregate principal amount of new 8.75% Senior Secured Second Lien Notes due 2030. This transaction represents a proactive measure to manage the company's debt profile.
This exchange is expected to reduce Babcock & Wilcox's aggregate debt obligation by $31 million. Furthermore, the company anticipates a reduction in its annual interest expense by $1.1 million as a direct result of this transaction. The new notes extend the maturity profile, pushing a significant portion of debt out to 2030.
The successful completion of this debt exchange is a critical step in addressing the substantial doubt about the company's ability to continue as a going concern. By reducing immediate debt burdens and extending maturities, Babcock & Wilcox aims to improve its liquidity position and provide greater financial stability. This action is central to the company's efforts to navigate its financial challenges.
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