KBR improves its capital structure and financing flexibility

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HOUSTON, November 24, 2021 / PRNewswire / – KBR (NYSE: KBR) today announced that the November 18, 2021, the company successfully closed the fifth amendment to its credit agreement dated April 25, 2018, as modified previously.

As a result of a strategic change in the makeup of the business operations, consistent performance against long-term financial goals, improvement in business credit ratings, and continued resolution of legacy issues , the amendment considerably improves the flexibility of the company and reduces the cost of servicing its debt.

“This amendment marks a further step in the evolution of our capital structure and reflects the company’s shift towards delivering high-end differentiated solutions and technologies in growing and attractive end markets,” said Stuart bradie, President and CEO of KBR. “By relying on the acceleration of the company’s dynamics, KBR has significant capital deployment flexibility by 2025 and beyond. “

The amendment increases capacity and flexibility under certain financial and negative covenants, allows the netting of unallocated cash up to a specified limit for the purpose of calculating the leverage ratio, reduces the interest rate payable and the applicable margin pricing schedule for Term Loan Facility A and Revolving Credit Facility and extends the maturity date of Term Loan Facility A and Revolving Credit Facility February 2025 To November 2026.

For more information, see the full amendment to the credit agreement included as Exhibit 10.1 of the company’s current report on Form 8-K filed with the United States Securities and Exchange Commission on November 24, 2021 and available on the company’s website.

About KBR

We provide science, technology and engineering solutions to governments and businesses around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.

KBR is proud to work with customers around the world to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, we deliver.

Visit www.kbr.com

Forward-looking statements

Statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the control of the company and which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the significant negative impacts on economic and market conditions from the COVID-19 pandemic and the company’s ability to respond to the challenges and resulting business disruptions; the recent dislocation of the global energy market; the company’s ability to manage its liquidity; the results and publicity surrounding audits and investigations conducted by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and the potential adverse results and consequences of such proceedings; changes in the capital expenditure of the company’s customers; the company’s ability to obtain contracts from existing and new customers and to perform those contracts; structural changes in the industries in which the company operates; the escalation of associated costs and the completion of fixed-fee projects and the company’s ability to control costs within the framework of its contracts; negotiations of claims and contractual disputes with the company’s customers; changes in the demand or price of oil and / or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with income tax laws; unstable political conditions, war and the effects of terrorism; foreign operations and exchange rates and controls; development and installation of financial systems; the possibility of cyber attacks and malware; increased competition for employees; the ability to complete and integrate acquisitions; and joint venture operations, including joint ventures that are not controlled by the company.

The company’s latest annual report on Form 10-K, subsequent Forms 10-Q and 8-K, and other documents filed with the United States Securities and Exchange Commission discuss some of the significant risk factors identified. by the company and likely to affect its activities, operating results and financial position. Except as required by law, the company assumes no obligation to publicly revise or update any forward-looking statements for any reason.

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SOURCE KBR, Inc.


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