J. Ray McDermott Completes Tender Offer and Closes Credit Facility
J. Ray McDermott, S.A., a subsidiary of McDermott International, Inc. (NYSE:MDR), has completed the previously announced cash tender offer and consent solicitation to purchase all of J. Ray's outstanding 11% Senior Secured Notes due 2013.
Using current cash on hand, J. Ray purchased $200 million in aggregate principal amount of the Notes (representing 100% of the previously outstanding Notes) that were tendered pursuant to the Offer and paid the related tender premiums. As previously announced, J. Ray expects to recognize approximately $50 million of expense in the second quarter of 2006 related to the early extinguishment of the Notes.
Also today, J. Ray announced it has entered into a new $500 million senior secured credit facility. The facility is comprised of a five-year, $400 million revolving credit and letter of credit facility, and a six-year, $100 million synthetic letter of credit facility. The new facility will be used to provide J. Ray with letter of credit capacity and working capital availability to support J. Ray's growth initiatives. As a result of these new facilities, approximately $125 million of previously restricted cash will become unrestricted and available for general corporate purposes.
J. Ray McDermott is a leading provider of engineering, procurement, construction, and installation services for offshore oil and gas field developments worldwide. McDermott International, Inc. is a leading worldwide energy services company. McDermott's subsidiaries provide engineering, construction, installation, procurement, research, manufacturing, environmental systems, project management and facility management services to a variety of customers in the energy and power industries, including the U.S. Department of Energy.
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