BWX Technologies Pushes Its $1.25 Billion Credit Line To 2031 And Eases A Lender Test
The nuclear components maker can drop its interest coverage test if two rating agencies grade it investment grade, and pricing will follow the cheaper of two grids.
BWX Technologies, which makes nuclear components, reactors and fuel, extended its $1.25 billion revolving credit line by one year to November 10, 2031, in an amendment signed Tuesday with its bank group. The deal also lets the company shed a key lender test if it earns investment-grade ratings.
A lender test with an off switch
The amendment changes the minimum interest coverage ratio, a test of how comfortably earnings cover interest payments. That requirement stops applying if no default or event of default exists and the company obtains investment-grade corporate or corporate family ratings, with a stable outlook or better, from at least two designated rating agencies.
As the 8-K describes it, the change is conditional. Until those ratings arrive, the test stays in place.
Wells Fargo Bank, National Association, remains administrative agent for the lenders. The facility is senior secured, and the subsidiary guarantors signed the amendment for limited purposes.
Pricing follows the cheaper grid
Borrowing costs on the facility will now follow the lower of two pricing grids. One is the existing grid tied to the company's leverage ratio. The other is new and tied to its corporate or corporate family rating from designated agencies.
The amendment amends the second amended and restated credit agreement dated November 10, 2025. Except as amended, that agreement's terms stay in full force and effect.
A naval supplier with a government base
BWX's Government Operations segment builds naval nuclear components, reactors and fuel for the Energy Department's Naval Nuclear Propulsion Program. Its Commercial Operations segment makes steam generators, heat exchangers and spent-fuel storage containers for utilities, and produces medical radioisotopes.
The U.S. Government represented about 68% of consolidated revenue in 2025, and backlog stood at about $7.26 billion at the end of that year, according to the company's annual report.
The extended maturity of November 10, 2031 now governs the revolver, and the interest coverage test falls away only if two agencies grade the company investment grade.
Sources
- 8-K Filing — BWX Technologies, Inc. (BWXT) — SEC EDGAR
