BWX Technologies Announces Proposed $400 Million Senior Notes Offering

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) has announced plans to offer up to $400 million in senior notes due 2029, exempt from registration under the Securities Act. The proceeds will be used to redeem outstanding 5.375% senior notes due 2026 and to repay debt under its credit facility. The offering is targeted at qualified institutional buyers. BWXT warns that forward-looking statements in the release could vary due to economic conditions and market demand. The company emphasizes its role in providing nuclear solutions for various sectors.

Positive

• Plans to raise $400 million through senior notes offering.
• Proceeds to be used for redeeming higher-interest 2026 Notes, potentially reducing interest expenses.

Negative

• Forward-looking statements carry risks, including reliance on market demand.
• No assurance that the offering will be completed.

BWX Technologies, Inc. (NYSE: BWXT) (“BWXT”) announced today that it plans to offer up to $400 million aggregate principal amount of 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. There can be no assurance that the offering of the Notes will be completed.

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 $400 million senior notes offering?

BWXT intends to use the proceeds to redeem outstanding 2026 senior notes and repay credit facility debt.

When does BWXT plan to redeem its 5.375% senior notes due 2026?

The redemption of the 2026 notes is planned on or after July 15, 2021.

Who can purchase BWXT's senior notes?

The notes are offered only to qualified institutional buyers and those outside the U.S.

What risks are associated with BWXT's forward-looking statements?

Risks include economic changes and market demand that could affect the success of the notes offering.

Has BWXT's senior notes offering been registered?

No, the notes have not been registered under the Securities Act or any other securities laws.