NYSE: MDR 6.22
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May 24, 2019

McDermott Closes Previously Announced Private Placement of $300 Million of Redeemable Preferred Stock and Warrants and $230 Million Increase in Letter-of-Credit Capacity


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.


Investor Relations

Scott Lamb
Vice President, Investor Relations
+1 832 513 1068

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Global Vice President, Communications
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new McDermott logo (PRNewsfoto/McDermott International, Inc.)


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SOURCE McDermott International, Inc.

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