Shaw Group Inc. (SGR:US), the Baton Rouge, Louisiana-based builder of power plants, increased its existing credit facility to $1 billion from $850 million to support its continued growth.
Shaw received approval from its lenders to seek additional commitments that could boost the credit facility to $1.25 billion without further amendment, the company said today in a statement. The credit line keeps its maturity date of April 25, 2010.
Shaw has almost $500 million of cash on hand and plans to use the credit line mostly for letters of credit to expand its business. The company currently has no borrowings under the credit line. Demand for nuclear and fossil power projects helped fuel a 34 percent sales increase in the first quarter ended Nov. 30 and has boosted its quarterly backlog 47 percent.
Shaw also reiterated the fiscal 2008 revenue forecast that it provided in October that calls for $7 billion in sales. The average of eight analysts estimates compiled by Bloomberg was for revenue of $7.18 billion.
Shaw fell $2.99, or 4.7 percent, to $60.64 at 12:01 p.m. in New York Stock Exchange composite trading. The stock has increased 86 percent in the past 12 months.
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