McDermott Secures $560MM in New Capital
McDermott International, Ltd has announced that it has secured approximately $560 million in new capital through a series of transactions expected to close by the end of the year.
The company outlined that it had received a commitment from certain existing lenders and shareholders with respect to a new letter of credit facility that will replace its existing cash secured letter of credit facility and permit the release of cash collateral of approximately $390 million. McDermott also noted that it will raise $170 million in gross proceeds from the issuance of common shares to certain existing shareholders.
The company highlighted that it secured approval for the transactions 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, McDermott stated.
“The support of the investors and the steering committee reflects their confidence in our long-term business strategy and competitive position,” David Dickson, the president and chief executive officer of McDermott, said in a company statement.
“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,” he added.
In June this year, McDermott announced that it had successfully completed its restructuring process. The restructuring equitized nearly all of McDermott's $4.6 billion of funded debt and saw the company emerge with $2.4 billion in letter of credit capacity and $544 million of funded debt.
McDermott describes itself as a premier, fully integrated provider of engineering and construction solutions to the energy industry. The business operates in more than 50 countries and employs over 30,000 people.
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