BABCOCK & WILCOX ENTERPRISES, INC. (NYSE:BW) Files An 8-K Entry into a Material Definitive Agreement
On August 7, 2019, Babcock & Wilcox Enterprises, Inc. (“we”, “our” or the “Company”) entered into Amendment No. 17 (the “Amendment”) to the Credit Agreement, dated May 11, 2015 (as amended to date, the “Credit Agreement”) with Bank of America, N.A., as administrative agent and lender, and the other lenders party thereto. The Amendment clarifies the method for calculating losses related to our Vølund contracts and resets the cap related to these losses to $15.0 million to align with the clarification commencing with the quarter ending March 31, 2019. Certain of the lenders, as well as certain of their respective affiliates, have performed and may in the future perform for the Company and its subsidiaries, various commercial banking, investment banking, lending, underwriting, trust services, financial advisory and other financial services, for which they have received and may in the future receive customary fees and expenses. Certain term loan lenders under the Credit Agreement are also significant shareholders of the Company, as we have previously disclosed in our public reports.
Item 2.02 Results of Operations and Financial Condition
On August 8, 2019, the Company issued a press release announcing our financial results for the quarter ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1, and the information contained in Exhibit 99.1 is incorporated by reference.
The information furnished to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
The information described in Item 1.01 above relating to the Amendment is incorporated into this Item 2.03 by reference.
On August 7, 2019, the Company announced that J. André Hall, the Company’s Senior Vice President, General Counsel and Corporate Secretary, had stepped down as an executive officer of the Company on August 5, 2019. The Company is grateful to Mr. Hall for his service and many contributions.
In connection with his resignation, Mr. Hall entered into a letter agreement with the Company to which he will (i) continue to remain employed through December 31, 2019 as a Special Advisor to the General Counsel; (ii) continue to receive his base salary; (iii) remain eligible to receive his bonus under the Company’s 2019 Management Incentive Plan; (iv) receive any outstanding equity awards that vest in accordance with the reduction in force rules outlined in his equity grant agreements; (v) receive any remaining tranche of time-vested restricted stock units issued under the Company’s November 2017 Retention Policy that vest as regularly scheduled on August 14, 2019; and (vi) receive a total of $570,000 over 24 months and a lump sum payment representing 18 months of medical, dental and vision insurance coverage in lieu of any amounts he might otherwise be entitled to under the Company’s Executive Severance Plan. In addition, Mr. Hall also entered into a consulting agreement, to become effective as of January 1, 2020, to which Mr. Hall will provide consulting services to the Company for at least an additional 12 months for a quarterly fee of $50,000.
On August 7, 2019, the Company also announced that Robert J. McKinney was appointed to succeed Mr. Hall as the Company’s Senior Vice President, General Counsel and Corporate Secretary effective August 5, 2019. A copy of the press release announcing Mr. McKinney’s appointment is attached as Exhibit 99.2 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
Babcock & Wilcox Enterprises, Inc. Exhibit
EX-99.1 2 q22019earningsrelease.htm EXHIBIT 99.1 Exhibit -Exhibit 99.1 News ReleaseBabcock & Wilcox Enterprises Announces Second Quarter 2019 Results – Babcock & Wilcox segment nearly doubled adjusted EBITDA to $19.0 million- All business segments showed improved results- Consolidated operating loss improved by $133.1 million to a loss of $4.3 million; generated consolidated adjusted EBITDA of $8.0 million- Equitization transactions substantially de-levered Company(BARBERTON,…
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About BABCOCK & WILCOX ENTERPRISES, INC. (NYSE:BW)
Babcock & Wilcox Enterprises, Inc. is a technology-based provider of fossil and renewable power generation and environmental equipment that includes a suite of boiler products and environmental systems, and services for power and industrial uses. The Company operates in three segments: Global Power, Global Services and Industrial Environmental. Through its Global Power segment, the Company engineers, manufactures, procures, constructs and commissions boilers fueled by fossil fuels and renewables in addition to environmental systems and related auxiliary equipment primarily to steam generating customers globally. Through its Global Services segment, the Company provides aftermarket products and services to steam generating utilities across the world and various industrial customers. Through its Industrial Environmental segment, the Company provides a range of environmental technology and services to industrial end markets across the world.
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