McDermott Retires Debt, Gets Tax Refund from IRS
McDermott International, Inc. has accelerated the repayment of the $250 million term loan portion of The Babcock & Wilcox Company's ("B&W") credit facility. This loan carried interest expense at LIBOR plus 3.0%, and the Company does not incur any penalty for the early retirement of this debt. Following this retirement, McDermott does not have any significant debt outstanding.
Additionally, the Company's subsidiary, McDermott Incorporated, received this week $272 million from the United States Internal Revenue Service. This federal tax refund resulted from carrying back to prior tax years the tax loss generated in 2006, primarily as a result of $955 million of asbestos-related expenses paid last year associated with the settlement of B&W's reorganization. A number of these prior tax years are currently open, and therefore certain adjustments may still occur before final settlement of these tax years.
McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees
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