BWX Technologies Inc.'s Proposed $400 Million Senior Unsecured Notes Rated 'BB'

TORONTO (S&P Global Ratings) June 9, 2020—S&P Global Ratings today assigned its 'BB' issue-level rating to BWX Technologies Inc.'s proposed $400 million senior unsecured notes due 2028. The recovery rating is '4', indicating expectations for an average (30%-50%; round estimate: 35%) recovery in a payment default. At the same time, we placed our 'BB-' issue-level rating on the company's existing $400 million senior unsecured notes due 2026 on CreditWatch with positive implications. Once the transaction closes, we would raise the issue-level rating to 'BB' and revise the recovery rating to '4'. We expect the company to use the proceeds to repay the existing senior secured term loan (unrated; $254 million currently outstanding) and a portion of outstanding borrowings on the

...June 9, 2020 TORONTO (S&P Global Ratings) June 9, 2020--S&P Global Ratings today assigned its '##' issue-level rating to BWX Technologies Inc.'s proposed $400 million senior unsecured notes due 2028. The recovery rating is '4', indicating expectations for an average (30%-50%; round estimate: 35%) recovery in a payment default. At the same time, we placed our '##-' issue-level rating on the company's existing $400 million senior unsecured notes due 2026 on CreditWatch with positive implications. Once the transaction closes, we would raise the issue-level rating to '##' and revise the recovery rating to '4'. We expect the company to use the proceeds to repay the existing senior secured term loan (unrated; $254 million currently outstanding) and a portion of outstanding borrowings on the revolving credit facility. Total debt will remain essentially the same, so we do not expect any changes to our projected credit metrics for the company from the proposed transaction. ISSUE RATINGS-RECOVERY...

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