HOUSTON, Nov. 29, 2018 /PRNewswire/ -- McDermott
International, Inc. (NYSE: MDR) ("McDermott" or the "Company")
announced today the closing of the previously announced private
placement of $300 million of
redeemable preferred stock and warrants to purchase 6,773,094
shares of the Company's common stock with investment funds managed
by the Merchant Banking Division of The Goldman Sachs Group, Inc.
("Goldman Sachs MBD") and the availability of the previously
announced $230 million
letter-of-credit facility. The net proceeds from the private
placement are expected to be used for general corporate purposes,
including working capital requirements, and the increase in
letter-of-credit capacity is expected to enhance the Company's
readiness to book anticipated strong order intake.
Barclays acted as lead placement agent and Credit Agricole
Securities (USA) Inc., ABN AMRO
Securities (USA) LLC, RBC Capital
Markets, LLC, and BMO Capital Markets Corp acted as placement
agents. The Goldman Sachs Investment Banking Division acted as
advisor to Goldman Sachs MBD in connection with the private
placement.
Barclays and Credit Agricole Corporate Investment Bank acted as
joint lead arrangers for the letter of credit facility with Moelis
& Company LLC acting as financial advisor to McDermott.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions to
transport and transform oil and gas into the products the world
needs today. Our proprietary technologies, integrated expertise and
comprehensive solutions deliver certainty, innovation and added
value to energy projects around the world. Customers rely on
McDermott to deliver certainty to the most complex projects, from
concept to commissioning. It is called the "One McDermott Way."
Operating in over 54 countries, McDermott's locally focused and
globally-integrated resources include approximately 40,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this communication which are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties that may impact actual results of
operations of McDermott. These forward-looking statements include,
among other things, statements about the expected use of proceeds
from the private placement and the Company's readiness to book
anticipated strong order intake. 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: the
possibility that the expected synergy savings from the recently
completed combination with CB&I will not be realized, or will
not be realized within the expected time period; difficulties
related to the integration of McDermott and CB&I; disruption
from the combination making it more difficult to maintain
relationships with customers, employees, regulators or suppliers;
the diversion of management time and attention to integration
matters; adverse changes in the markets in which McDermott operates
or credit markets; the inability of McDermott to execute on
contracts in backlog successfully; 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 customers and other
business counterparties of McDermott; 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. You should not place undue reliance
on forward-looking statements. For a more complete discussion of
these and other risk factors, please see each of McDermott's annual
and quarterly filings with the U.S. Securities and Exchange
Commission (the "SEC"), including its annual report on Form 10-K
for the year ended December 31, 2017
and subsequent quarterly reports on Form 10-Q. This communication
reflects the views of McDermott's management 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.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870
5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.