Babcock & Wilcox (NYSE:BWC) and subsidiary Babcock & Wilcox Enterprises, have each entered into a credit agreement in connection with the planned spin-off of BW, which will consist of the company’s Power Generation business.
The credit agreement was outlined in an 8-K report filed May 15 with the Securities & Exchange Commission (SEC). In connection with the planned spin-off, the parent company expects to change its name to BWX Technologies.
The company expects that both the BWXT credit Agreement and the BW credit Agreement will close immediately prior to the completion of the planned spin-off, Babcock & Wilcox said.
The two credit agreements were dated May 11.
The Babcock & Wilcox board of directors had voted in November 2014 to authorize the tax-free spin-off of the company’s Power Generation business to B&W shareholders.
The Power Generation business, which will become known as Babcock & Wilcox Enterprises, is a leading technology-based provider of advanced fossil and renewable power generation equipment that includes a broad suite of environmental controls, products, and services for power and industrial uses.
BWX Technologies will include the Government & Nuclear Operations business and will consist of the Nuclear Operations, Technical Services, Nuclear Energy and mPower small modular reactor (SMR) businesses.
Commercialization of the company’s SMR business has been pushed to the back burner in the past couple of years. About 10 more employees in Lynchburg, Va., who had been associated with the company’s SMR business, are being laid off the Lynchburg News & Advance reported May 21.