The Shaw Group says its subsidiary Nuclear Energy Holdings was refused permission to redeem bonds used to finance its Westinghouse Group acquisition, meaning the debt won’t come off Shaw’s books until March 15, 2013. Shaw announced plans in September to sell Nuclear Energy Holdings’ 20% stake in Westinghouse back to majority owner Toshiba Corp. With the early sale request rejected, Shaw says the option will now be exercised on Oct. 6, 2012, with cash settlement on Jan. 4, 2013. Shaw obtained its 20% stake in Westinghouse in October 2006 for $1.08 billion, while Toshiba purchased a 77% interest from the U.K.’s British Nuclear Fuels for $4.2 billion; Japanese heavy machinery maker IHI Corp. bought the remaining 3%. By selling its Westinghouse stake, Shaw says it would get rid of about $1.7 billion in debt.
Debt from Westinghouse deal to stay on Shaw’s books until 2013
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