McDermott Secures $560MM in New Capital

McDermott Secures $560MM in New Capital
McDermott International Ltd has announced that the company secured $560 million in new capital on Dec. 31, 2020.

McDermott International Ltd has announced that the company secured $560 million in new capital on Dec. 31, 2020.

The new capital was provided through a series of transactions which was secured through commitments from certain existing lenders and shareholders, McDermott noted. The company said it met all conditions necessary to close these transactions and added that it has strengthened its balance sheet and increased its liquidity to provide financial flexibility for continued strong project execution and the pursuit of new opportunities.

“With the completion of the capital raise, McDermott has recapitalized its business with the support of its investors,” David Dickson, the president and chief executive officer of McDermott, said in a company statement.

“This additional capital solidifies our liquidity position and allows us to continue delivering superior project execution for our customers and pursue new growth opportunities,” he added.

“We want to thank our investors for the confidence they have in McDermott and its business model and our customers for their continued support,” Dickson continued.

In November last year, McDermott International announced that it had secured around $560 million in new capital through a series of transactions expected to close by the end of the year.

In June 2020, McDermott International revealed that it had successfully completed a restructuring process which equitized nearly all of its $4.6 billion of funded debt. In a company statement released at the time, McDermott International said it emerged with $2.4 billion in letter of credit capacity and $544 million of funded debt.

McDermott is a premier, fully integrated provider of engineering and construction solutions to the energy industry, the company’s website states. Based in Houston, Texas, the company has locations in Canada, central and south America, Europe, Africa, Asia, the Middle East and Australia, according to its website.

To contact the author, email andreas.exarheas@rigzone.com



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