McDermott Announces $810 Million Credit Agreement
July 03 2017 - 7:30AM
McDermott International, Inc. (NYSE:MDR) announced today it has
entered into a 5-year Amended and Restated Credit Agreement with
$810 million of capacity for letters of credit and a $300 million
revolving cash sublimit. Additionally, the agreement allows for
current or new lenders to increase commitments up to a total of
$1.0 billion.
The amended and restated facility will replace McDermott’s
previous $450 million Credit Agreement dated April 16, 2014 (as
amended) and will extend the maturity until 2022, provided that
McDermott’s existing senior secured notes are repaid by December
2020. In conjunction with the Amended and Restated Credit
Agreement, McDermott repaid in full the outstanding Term Loan under
the previous Credit Agreement.
“The increased limit of the facility, the $300 million revolving
cash sublimit, as well as the extended maturity are a culmination
of the financial transformation McDermott has made over the past
few years,” said Stuart Spence, McDermott’s Executive Vice
President and Chief Financial Officer. “The increased facility
capacity underscores the confidence and support shown by our
current and new lenders entering the facility and provides us with
a simplified capital structure, increased balance sheet flexibility
and positions us well for future growth.”
About McDermottMcDermott is a leading provider
of integrated engineering, procurement, construction and
installation (EPCI) services for upstream field developments
worldwide. The Company delivers fixed and floating production
facilities, pipelines and subsea systems from concept to
commissioning for complex offshore and subsea oil and gas projects
to help oil companies safely produce and transport hydrocarbons.
Our customers include national and major energy companies.
Operating in approximately 20 countries across the world, our
locally focused and globally integrated resources include
approximately 13,500 employees, a diversified fleet of specialty
marine construction vessels, fabrication facilities and engineering
offices. We are renowned for our extensive knowledge and
experience, technological advancements, performance records,
superior safety and commitment to deliver. McDermott has served the
energy industry since 1923. As used in this press release,
McDermott includes McDermott International, Inc. and its
subsidiaries and affiliates. To learn more, visit our website at
www.mcdermott.com. Forward-Looking StatementIn
accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this press release which are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties that may impact McDermott's actual
results of operations. These forward-looking statements include,
among other things, statements about the expected benefits to be
derived from the Amended and Restated Credit Agreement. Although we
believe that the expectations reflected in those forward-looking
statements are reasonable, we can give no assurance that those
expectations will prove to have been correct. Those statements are
made by using various underlying assumptions and are subject to
numerous risks, contingencies and uncertainties, including, among
others: adverse changes in the markets in which we operate or
credit markets, our inability to successfully execute on contracts
in backlog, changes in project design or schedules, the
availability of qualified personnel, changes in the terms, scope or
timing of contracts, contract cancellations, change orders and
other modifications and actions by our customers and other business
counterparties, changes in industry norms and adverse outcomes in
legal or other dispute resolution proceedings. If one or more
of these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected.
For a more complete discussion of these and other risk factors,
please see McDermott's annual and quarterly filings with the
Securities and Exchange Commission, including its annual report on
Form 10-K for the year ended December 31, 2016 and subsequent
quarterly reports on Form 10-Q. This press release reflects
management's views as of the date hereof. Except to the extent
required by applicable law, McDermott undertakes no obligation to
update or revise any forward-looking statement.
McDermott International, Inc.
Investor Relations
Ty Lawrence
Vice President, Treasurer and Investor Relations
+1 281.870.5147
tlawrence@mcdermott.com
Global Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005
amorgan@mcdermott.com
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