The Shaw Group Inc.

The Shaw Group Inc.

March 01, 2005 09:06 ET

Shaw Announces $226 Million Financing for Military Housing Privatization Project




MARCH 1, 2005 - 09:06 ET

Shaw Announces $226 Million Financing for Military
Housing Privatization Project

BATON ROUGE, La.--(CCNMatthews - Mar 1, 2005) -

The Shaw Group Inc. (NYSE: SGR) today announced that its 50%-owned
affiliate, American Eagle Northwest, LLC, has completed a $226 million
private placement revenue bond financing for its Navy Northwest Housing
Privatization Project. Proceeds from the sale of the bonds will be used
for costs of design, demolition, construction, renovations and
infrastructure placement for approximately 3,000 residential housing
units for certain of the U.S. Navy's installations in the Puget Sound
area of Washington state. Two series of revenue bonds were issued that
were rated AA/A by Standard & Poors and have various maturity dates with
a blended annual interest rate of 5.67%. This 50-year project is being
managed by American Eagle Northwest, LLC, owned 50% by Shaw and 50% by
an affiliate of C.E.I. Investment Corp. of Meriden, Connecticut and
includes the long-term operations, management, and maintenance of these
housing communities.

In November 2004, Shaw 50%-owned affiliates, Little Rock Family Housing,
LLC and Hanscom Family Housing, LLC, completed similar private placement
financing arrangements totaling $233 million for the design,
construction, and long-term operations and management of communities at
Little Rock Air Force Base and Hanscom Air Force Base in Arkansas and
Massachusetts, respectively. The bonds for the Little Rock project were
rated AA-/A- with a blended annual interest rates of 5.92%. The bonds
for Hanscom were rated AA/A with a blended interest rate of 5.74%. The
revenue bonds for all three financings are secured by proceeds from the
operations of the housing projects as well as by mortgages on the
properties and are non-recourse to Shaw.

J.M Bernhard, Jr., Chairman and Chief Executive Officer of The Shaw
Group Inc., said, "We have now completed over $450 million in bond
financings for three of our six 50%-owned privatized military housing
projects. These projects were well received by the bond ratings agencies
and the investing public. We look forward to moving ahead immediately
with the planning, design and construction phases of these projects and
providing the best possible residential experience for our service men
and women and their families for the next 50 years. We are also
proceeding with financing plans for our other privatized military
housing projects and expect additional financings to be completed in the
next several months."

C.E.I. Investment Corp. is a 50-year-old, privately-held firm that has
developed more than 35,000 homes across the United States. The company
has extensive expertise in the development and management of
master-planned communities, multi-family communities, as well as
communities committed to environmental preservation. C.E.I. has a
remarkable tenant satisfaction and retention rate within its managed
developments, with 97 percent occupancy and an average tenant stay in
excess of five years. In addition, the ongoing commitment of C.E.I.
Investment to its properties far exceeds industry standards, with C.E.I.
maintaining ownership and management of a majority of its developments
for more than 30 years.

The Shaw Group Inc. is a leading global provider of technology,
engineering, procurement, construction, maintenance, fabrication,
manufacturing, consulting, remediation, and facilities management
services for government and private sector clients in the power,
process, environmental, infrastructure and emergency response markets. A
Fortune 500 Company, The Shaw Group is headquartered in Baton Rouge,
Louisiana, and employs approximately 18,000 people at its offices and
operations in North America, South America, Europe, the Middle East and
the Asia-Pacific region. For further information, please visit the
Company's website at

Forward-Looking Statements - The Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for certain forward-looking
statements. The statements contained herein that are not historical
facts (including without limitation statements to the effect that the
Company or its management "believes," "expects," "anticipates," "plans,"
or other similar expressions) and statements related to revenues,
earnings, backlog, or other financial information or results are
forward-looking statements based on the Company's current expectations
and beliefs concerning future developments and their potential effects
on the Company. There can be no assurance that future developments
affecting the Company will be those anticipated by the Company. These
forward-looking statements involve significant risks and uncertainties
(some of which are beyond our control) and assumptions and are subject
to change based upon various factors. Should one or more of such risks
or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those
projected in the forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. A
description of some of the risks and uncertainties that could cause
actual results to differ materially from such forward-looking statements
can be found in the Company's reports and registration statements filed
with the Securities and Exchange Commission, including its Form 10-K and
Form 10-Q reports, and on the Company's website under the heading
"Forward-Looking Statements". These documents are also available from
the Securities and Exchange Commission or from the Investor Relations
department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our
website at


Contact Information

    The Shaw Group Inc., Baton Rouge
    Chris D. Sammons, 225-932-2546