BWX Technologies Announces the Closing of its Senior Notes Offering

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) has successfully closed a $400 million offering of 4.125% senior notes due 2029. The Notes are guaranteed by its wholly owned subsidiaries. Proceeds will be utilized to redeem the outstanding 5.375% senior notes due 2026 and repay credit facility debt. Any remaining funds will be held in cash or short-term investments. The release includes forward-looking statements and cautions against undue reliance on them. Further risk factors can be found in BWXT's SEC filings.

Positive

• Successfully closed $400 million offering of senior notes.
• Proceeds will be used to redeem higher interest 2026 Notes and repay existing debt.

Negative

• Forward-looking statements may vary due to economic and industry risks.

BWX Technologies, Inc. (NYSE: BWXT) (“BWXT”) announced today the closing of 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 are 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 of the Notes, 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.

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 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 amount of the senior notes issued by BWXT?

BWXT issued $400 million aggregate principal amount of senior notes.

What will BWXT do with the proceeds from the senior notes?

The proceeds will be used to redeem the outstanding 5.375% senior notes due 2026 and repay credit facility debts.

When is the redemption date for the 2026 Notes?

The redemption of the 2026 Notes is expected to occur on or after July 15, 2021.

What is the interest rate of the newly issued senior notes?

The newly issued senior notes have an interest rate of 4.125%.

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

Forward-looking statements involve risks such as economic changes and market demand fluctuations.