BWX Technologies announces proposed convertible senior notes offering

* BWX Technologies (BWXT [https://seekingalpha.com/symbol/BWXT]) on Wednesday said it intends to offer $1 billion aggregate principal amount of convertible senior notes due 2030.
* BWXT also expects to grant to the initial purchasers of the notes an option to purchase up to an additional $150 million aggregate principal amount of the notes, for settlement within a 13-day period beginning on, and including, the first date on which the notes are issued.
* BWXT intends to use a portion of the net proceeds from the offering to fund the cost of entering into the capped call transactions, repay in full all indebtedness outstanding under its existing credit facility and use any remaining net proceeds for general corporate purposes.
* Concurrently with the closing of the offering, BWXT expects to enter into a new five-year $1.25 billion senior secured revolving credit facility to replace its existing credit facility.
* The notes will mature on November 1, 2030, unless earlier converted, redeemed or repurchased.
* In connection with the pricing of the notes, BWXT expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions.
* BWXT -5.18% premarket to $190.0.
* Source: Press Release [https://seekingalpha.com/pr/20294017-bwx-technologies-announces-proposed-convertible-senior-notes-offering]

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