McDermott International Ltd. has secured approximately $560 million in new capital through a series of transactions expected to close by the end of the year, the company said on Nov. 18.
McDermott has secured commitments from certain existing lenders and shareholders for these transactions, as well as approval from a steering committee comprised of certain existing letter of credit and term loan lenders. The transactions are designed to further strengthen the company's balance sheet, increase liquidity and fund future growth opportunities.
“The support of the investors and the steering committee reflects their confidence in our long-term business strategy and competitive position,” David Dickson, president and CEO of McDermott, said. “Following on the heels of a successful restructuring earlier this year, this additional capital will further solidify our liquidity position, enabling us to continue to deliver superior project execution for our customers and consistently pursue new growth opportunities as demand for our expertise and capabilities increases.”
McDermott has received a commitment from the Investors with respect to a new letter of credit facility that will replace its existing cash secured letter of credit facility, permitting the release of cash collateral of approximately $390 million. Additionally, McDermott will raise $170 million in gross proceeds from the issuance of common shares to certain of its existing shareholders that has been backstopped by the Investors. The transactions are expected to close by year end.
Kirkland & Ellis LLP is serving as legal counsel to McDermott, AP Services LLC, an affiliate of AlixPartners, is serving as operational advisor and Centerview Partners is serving as the company's financial advisor.
Recommended Reading
Equinor Commences First Tranche of $5B Share Buyback
2025-02-07 - Equinor began the first tranche of a share repurchase of up to $5 billion.
Rising Phoenix Capital Launches $20MM Mineral Fund
2025-02-05 - Rising Phoenix Capital said the La Plata Peak Income Fund focuses on acquiring producing royalty interests that provide consistent cash flow without drilling risk.
Chevron Makes Leadership, Organizational Changes in Bid to Simplify
2025-02-24 - Chevron Corp. is consolidating its oil, products and gas organization into two segments: upstream and downstream, midstream and chemicals.
Shell Shakes Up Leadership with Upstream and Gas Director to Exit
2025-03-04 - Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, will step down effective March 31.
USA Compression Names Chris Wauson as COO
2025-03-07 - Chris Wauson, currently the leader of natural gas compression company USA Compression Partners’ Permian office, has been chosen as the company’s new COO.