Company: BWNB
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001630805-25-000090
Chunk: 62

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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,017 8,742 Letters of credit subject to currency revaluation4,395 4,400 Other Letters of credit, bank guarantees and surety bondsCertain of our subsidiaries, that are primarily outside of the United States, have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity.

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We have posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should we fail to perform our obligations under our applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds the underwriters issue in support of some of our contracting activity.The following table provides a summary of outstanding letters of credit issued outside of the domestic facilities, and outstanding surety bonds: September 30,20252024Letters of credit under non-domestic facilities$623 $594 Surety Bonds 127,680 174,296 Our ability to obtain and maintain sufficient capacity under our current Debt Facilities is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished.Other Loans PayableAs of September 30, 2025, we had loans payable of approximately $9.9 million, net of debt issuance costs of $0.5 million, related to sale-leaseback financing transactions. As of December 31, 2024, we had loans payable of approximately $9.3 million, net of debt issuance costs of $0.5 million, related to sale-leaseback financing transactions.During the nine months ended September 30, 2025, we received a payment of $5.0 million from the State of West Virginia relating to our BrightLoop™ project which is considered a forgivable loan. The loan will be forgiven in full when certain employment and capital expenditure milestones are met during the course of project.

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Interest expense in the Condensed Consolidated Financial Statements consisted of the following components:Three Months Ended September 30,Nine Months Ended September 30,(in thousands)2025202420252024Components associated with borrowings from:    Senior Notes due 2026$3,893 $6,407 $15,