McDermott offers second-lien senior secured notes

McDermott International Inc.

McDermott International Inc. says that it intends to offer $500 million aggregate principal amount of its second-lien senior secured notes due 2021.  

McDermott intends to use the net proceeds from the offering of the notes, together with other financing sources (including proceeds expected to be received in connection with the refinancing of its outstanding credit agreement with a new first-lien credit facility), to refinance revolving credit facility indebtedness outstanding under its existing credit agreement and for other general corporate purposes, including the funding of working capital requirements and capital expenditures. The new first-lien credit facility may include a term loan of up to $400 million and, potentially, a letter of credit facility.

The notes will be unconditionally guaranteed, jointly and severally, on a senior secured second-lien basis, by McDermott’s existing and future subsidiaries that guarantee indebtedness under its credit agreement.

The notes and the guarantees will be secured on a second-lien basis by pledges of capital stock of certain subsidiaries of McDermott and mortgages and other security interests covering substantially all personal property of McDermott and substantially all of its wholly owned subsidiaries, subject to certain exceptions; and certain vessels owned by McDermott’s wholly owned subsidiaries.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...