Firm now has $1.45 billion it can use: The Shaw Group has expanded its credit agreement to $1.45 billion. Brian K. Ferraioli, Shaw’s executive vice president and chief financial officer, says the deal gives the company increased financial flexibility and supports ongoing growth initiatives. Terms of the agreement give Shaw $1.25 billion for working capital needs and general corporate purposes.
Gains reported in May: Builders broke ground on more new homes in May, but most of the gains were in the volatile apartment sector. The Commerce Department says new-home construction rose 3.5% from April to a seasonally adjusted annual rate of 560,000 units per year. Economists say the pace of construction is far below the 1.2 million new homes per year that must be built to sustain a healthy housing market. Many credit-strapped builders are struggling to compete with comparatively cheap foreclosures. Housing permits, a gauge of future construction, rose 8.7% last month, to the highest level since December.
