KBR Inc. announced today that the Company has received a Waiver of Compliance under its Five Year Revolving Credit Agreement dated as of December 2, 2011, for certain representations, warranties and covenants of the Credit Agreement. The Waiver relates to certain defaults that were triggered, or might have been triggered, from KBR s May 5, 2014, announcement that it intends to restate its year ended December 31, 2013, financial statements, and from the timing and delivery of financial statements for the three months ended March 31, 2014, and related documents, due to delays caused by the pending restatement.
The Waiver is subject to KBR s being current with its filings of its annual and quarterly reports with the SEC by August 30,2014. With the receipt of the Waiver, no event of default exists under the Credit Agreement as a result of the pending restatement. KBR may request the issuance of new letters of credit and loan advances under the Credit Agreement in accordance with its terms.
KBR is grateful for our financial institutions expeditious review and approval of this waiver, said Mr. Brian K. Ferraioli, Executive Vice President and Chief Financial Officer and Interim Principal Executive for KBR. Execution of this waiver reaffirms the confidence that our lending institutions have in KBR and its ongoing business.