J. Ray McDermott Signs Letter-of-Credit Facility

McDermott International, Inc. says that its wholly owned subsidiary, J. Ray McDermott, S.A. ("J. Ray") and one of J. Ray's subsidiaries have entered into a $105.2 million unsecured credit facility (the "Facility") with a syndicate of commercial banking institutions.

The Facility will provide letters-of-credit supporting bank guarantees issued in favor of J. Ray's customers in connection with two previously-announced projects recently awarded to J. Ray McDermott Eastern Hemisphere Limited. The term of the Facility is for the duration of the specified projects, and the initial commission rate is less than 4.25 percent on an annualized basis.