Company: BWNB
Filing Date: 2025-05-21
Form Type: 8-K
Source: 0001104659-25-051300
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Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-05-21
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement

On May 20, 2025, Babcock &
Wilcox Enterprises, Inc., a Delaware corporation (the “ Company”), completed its previously announced privately negotiated exchange transaction with two institutional
investors (the “ Investors”) pursuant to which the Investors exchanged a total of approximately $48 million aggregate principal
amount of the Company’s 6.50% Senior Notes due 2026 and approximately $84 million aggregate principal amount of the Company’s
8.125% Senior Notes due 2026 owned by them (the “ Exchanged Notes”) for approximately $101 million aggregate principal amount
of newly-issued 8.75% Senior Secured Second Lien Notes due 2030 (the “ New Notes”), whereupon the Exchanged Notes were cancelled
(such transaction, the “ Exchange”).

Indenture

The New Notes were issued pursuant to an Indenture, dated as of May 19, 2025 (the “ Indenture”), between the Company, certain subsidiaries of the Company, as guarantors, and GLAS Trust Company
LLC, a New Hampshire limited liability company, as trustee and collateral agent (in such capacities, the “ Trustee”), and the
New Notes are unconditionally guaranteed jointly and severally by all direct and indirect wholly-owned restricted subsidiaries of the
Company, subject to certain excluded subsidiaries (collectively, the “ Guarantors”). The New Notes are secured by substantially
all of the assets of the Company and the Guarantors, pursuant to a security and pledge agreement, dated as of May 19, 2025 (the “ Security
and Pledge Agreement”), by and among the Company, the Trustee and the other parties party thereto. The security interests in the
Company’s assets are subject to an intercreditor agreement (the “ Intercreditor Agreement”) governing the rights and
priorities of the secured parties under the Credit Agreement, the Indenture and the holders of certain other indebtedness outstanding
on May 19, 2025 and that may be incurred in the future. Under the Intercreditor Agreement and other intercreditor arrangements, the
New Notes are subordinated in right of payment and lien priority to the satisfaction in full of (i) the obligations and satisfaction
of the liens under the Company’s Credit Agreement, dated as of January 18, 2024, with certain subsidiaries of the Company as
guarantors, the