BWX Technologies Announces Pricing of Senior Notes Offering

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) has priced its offering of $400 million in 4.125% senior notes due 2029. The offering aims to redeem the outstanding 5.375% senior notes due 2026, utilizing the net proceeds, along with cash or borrowings. The completion of the notes offering is expected on April 13, 2021, subject to customary closing conditions. The notes are offered under Rule 144A and Regulation S and are not registered under the Securities Act. BWXT warns of potential risks and uncertainties related to the offering's success and market demand.

Positive

• Successfully priced $400 million of 4.125% senior notes, expected to enhance liquidity.
• Intended use of proceeds to redeem higher interest rate 5.375% senior notes, reducing overall interest expenses.

Negative

• Risks associated with market demand for the Notes could impact successful sale.
• Dependence on future economic conditions may influence the effectiveness of the offering.

BWX Technologies, Inc. (NYSE: BWXT) (“BWXT”) announced today that it has priced its previously announced offering of $400 million aggregate principal amount of 4.125% senior notes due 2029 (the “Notes”) in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Act”). The Notes will be guaranteed by each of BWXT’s present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under BWXT’s credit facility.

BWXT intends to use the net proceeds from the offering, together with cash on hand or borrowings under its credit facility, to redeem, on or after July 15, 2021, all of its outstanding 5.375% senior notes due 2026 (the “2026 Notes”) at the then-applicable redemption price. Pending the application of the net proceeds to redeem all outstanding 2026 Notes, BWXT intends to repay in full all indebtedness outstanding under its credit facility, with the remaining net proceeds to be held in cash or invested in short-term interest-bearing accounts, securities or similar investments. The consummation of the offering of the Notes is expected to be completed on April 13, 2021, subject to customary closing conditions.

The Notes and the related guarantees have not been registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption. The Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

BWXT cautions that this press release contains forward-looking statements, including, without limitation, statements regarding the anticipated offering of the Notes, the redemption of the 2026 Notes, the repayment of indebtedness under its credit facility and the other expected use of proceeds. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, material adverse changes in economic or industry conditions generally and the market demand for the Notes. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed or implied in these forward-looking statements. For a more complete discussion of other risk factors affecting BWXT, see BWXT’s filings with the Securities and Exchange Commission, including BWXT’s annual report on Form 10-K for the year ended December 31, 2020. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va., BWXT provides safe and effective nuclear solutions for national security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,700 employees, BWXT has 12 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities.

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FAQ

What is the purpose of BWXT's recent notes offering?

BWXT aims to redeem its outstanding 5.375% senior notes due 2026 and enhance liquidity with the proceeds from the $400 million offering.

When is the completion date for BWXT's notes offering?

The completion of the notes offering is anticipated on April 13, 2021, pending customary closing conditions.

What interest rate are BWXT's new senior notes priced at?

The new senior notes are priced at an interest rate of 4.125% and are due in 2029.

What risks does BWXT mention regarding its offering of senior notes?

BWXT cautions that risks include potential adverse market demand for the notes and changes in economic conditions.

Who can purchase BWXT's senior notes?

The notes are being offered only to qualified institutional buyers under Rule 144A and to persons outside the U.S. under Regulation S.