Babcock & Wilcox Enterprises Announces Closing of $100 Million Offering of Series A Cumulative Perpetual Preferred Stock

Babcock & Wilcox Enterprises, Inc. ("B&W" or the "Company") (NYSE: BW) announced that on May 7, 2021 it closed an underwritten registered public offering of 4,000,000 shares of its 7.75% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share with a liquidation preference of $25.00 per share (the “Preferred Stock”), at an offering price of $25.00, for gross proceeds of approximately $100 million before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

B&W granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of the Preferred Stock in connection with the offering, which option remains in effect.

The Preferred Stock is expected to begin trading on the NYSE under the symbol “BW PRA” within 30 business days of the closing date.

The offering resulted in net proceeds of approximately $95.7 million after deducting underwriting discounts and commissions, but before expenses. B&W intends to use the net proceeds of the offering for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage.

Dividends on the Preferred Stock will be paid when, as and if declared by the Company’s Board of Directors at the annual rate of 7.75% of the $25.00 liquidation preference per year (equivalent to $1.9375 per year). Dividends on the Preferred Stock will be payable quarterly when, as and if declared in arrears on March 31, June 30, September 30 and December 31 of each year. The first dividend on the Preferred Stock, when, as and if declared, will be paid on June 30, 2021, for less than a full quarter after the initial issuance of the Preferred Stock and covering the period from the first date the Preferred Stock is issued and sold through, but not including, June 30, 2021.

“We continue to see new opportunities globally for both organic and inorganic growth of our renewable and environmental technologies, including waste-to-energy, hydrogen production and carbon capture technologies with the potential to drive a world-wide industrial transformation to a green environmental future,” said Kenneth Young, B&W’s Chairman and CEO. “We are also seeing acquisition opportunities within the thermal services sector with the potential to achieve immediate synergies and higher margins, leveraging the strength of our experienced management team.”