Babcock Power Announces New Three-Year Credit Agreement

June 10, 2010

Danvers, MA – Babcock Power Inc. (BPI), a privately held Delaware corporation, announced today that it has executed an agreement for a new $290 million, three-year senior secured revolving credit facility with Bank of America. The new facility will replace two existing credit facilities, and increase BPI’s borrowing capacity by $95 million. This financial facility further demonstrates BPI’s continued growing financial strength and ongoing commitment to the power generation industry.

BPI’s President and CEO, Mike LeClair, commented, “This new credit facility further enhances BPI’s market position, allowing it to capitalize on its broad range of products and services for fossil, nuclear, cogeneration, combined cycle, solar, biomass and waste-to-energy plants. Babcock Power will utilize the additional borrowing capacity to; expand its leadership role in the Heat Recovery Steam Generator market, provide for additional growth in its heat exchanger, fossil fired boiler services and air quality control system markets, and increase the amount of capital available for strategic acquisitions.”

“This new agreement reflects BPI’s consistently solid balance sheet and exceptional liquidity, and will provide BPI with the increased capacity and financial flexibility that we require to support our growing operations, increased volume of business and ever increasing opportunities in all our served markets,” commented Anthony Brandano, BPI’s CFO.

The $290 million three-year senior secured revolving credit facility closed on Thursday, May 27, 2010. Bank of America Securities LLC acted as Joint Lead Arranger and Bookrunner to the left of PNC Capital Markets LLC and Wells Fargo Securities LLC. Bank of America, N.A. acted as Administrative Agent on the transaction, PNC Bank, National Association and Wells Fargo Bank National Association acted as Co-Syndication Agents and Citizens Banks and Fifth Third Bank acted as Co-Documentation Agents. Additional lenders under the facility include BB&T and Citibank, N.A. The deal was originally launched at $250 million, but was upsized due to oversubscription.

Babcock Power Inc.,, through its subsidiaries, is one of the world’s leading suppliers of technology, equipment, and services to the power generation industry. Babcock Power subsidiary companies include; Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester, MA), Boiler Tube Company of America (Lyman, SC), and TEi Construction Services, Inc. (Duncan, SC).