Jacobs has announced it entered into a new term loan facility, effective March 25, 2020 to strengthen financial flexibility, the company announced on Thursday.
President and CFO Kevin Berryman said, “Jacobs has made significant progress transforming to a business model aligned to longer-term margin enhancing growth opportunities in sectors such as national security, space exploration, environmental and water resiliency, transportation-related infrastructure and the convergence of information and operational technology.”
Under the terms of the facility, Jacobs borrowed $730 million and a U.K. subsidiary borrowed £250 million with a maturity in March 2025. The additional assets will be used for general corporate purposes, including the repayment of certain debt.
Borrowings under the term loan will bear interest at the prevailing LIBOR rate plus a margin of between 0.875 percent and 1.50 percent. The strategic actions will enable Jacobs’ to enhance the company’s financial flexibility through an additional $1 billion of liquidity capacity, which brings Jacobs total cash on hand and revolver capacity to more than $2 billion.
“Given the current market conditions, we are pleased that our banking partners recognized the financial strength associated with our transformed company and thank them for their continued partnership,” added Berryman. The company will provide further details in a Form 8-K to be filed with the Securities and Exchange Commission.
At Jacobs, we’re challenging today to reinvent tomorrow by solving the world’s most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With $13 billion in revenue and a talent force of more than 55,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector.