Shaw Increases Credit Facility to $1 Billion
The Shaw Group Inc. has increased its existing credit facility to $1 billion from $850 million. Shaw also has received approval from its lenders to seek additional commitments that could increase the credit facility to $1.25 billion without further amendment.
"We appreciate the confidence and the continued support of our lenders evidenced by the increase in our credit facility," said Brian K. Ferraioli, executive vice president and chief financial officer of Shaw. "Shaw has nearly $500 million of cash on hand and the increased facility will be used primarily for letters of credit to support our continued business growth. Our fiscal 2007 revenues of $5.7 billion were 20 percent higher than in 2006, and we forecast our 2008 revenues to increase by an additional 20 percent to approximately $7 billion."
The amended credit facility retains its original maturity date of April 25, 2010, and other substantive terms of the original agreement remain unchanged. No borrowings are outstanding under the facility, which is currently being utilized for the issuance of letters of credit frequently required in the engineering and construction industry.
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