Refinancing includes completion of $500 million equity rights offering, $550 million Nordic bond issuance and new long-term Letter of Credit facility
McDermott International has announced the successful completion of its comprehensive refinancing transaction, including a backstopped $500 million equity financing, a $550 million senior secured Nordic bond issuance and a new long-term letter of credit and guarantee facility.
The refinancing builds upon the Company's strong operational and financial performance, including consistent project execution and disciplined bidding. This platform for long-term growth positions McDermott to execute its high-quality global backlog, pursue disciplined growth opportunities and advance its long-term strategy.
"This refinancing reflects the continued support and confidence our shareholders, lenders and bond investors have shown in our strategy, performance and future," said Michael McKelvy, McDermott Chief Executive Officer and Chair of the Board of Directors. "We believe the successful completion of this transaction positions McDermott with the financial foundation to continue building on the momentum we've established through strong project delivery and a relentless focus on serving our customers."
The completed refinancing consists of:
- $500 million equity financing through a rights offering to existing shareholders, which was 97% subscribed by Class A ordinary shareholders and completed by the related backstop commitments,
- A $550 million senior secured bond issuance in the Nordic market due in 2031,
- A new long-term letter of credit and guarantee facility, and
- A revolving credit facility.
Collectively, these transactions are designed to extend McDermott's maturity profile, further deleverage the balance sheet and provide long-term financing certainty.
Source: McDermott
