J. Ray McDermott to price $200 million 11% notes at discount, talk is 11¼%-11½%

By Paul A. Harris

St. Louis, Nov. 20 - Price talk emerged Thursday on J. Ray McDermott, SA's upcoming offering of $200 million 10-year senior secured notes (B3/B-), according to an informed source. The notes are expected to price with an 11% coupon at a discount to yield between 11¼% and 11½%.

Pricing is expected on Friday.

Morgan Stanley is the bookrunner on the Rule 144A/Regulation S offering.

The notes will be non-callable for five years and will contain a three-year equity clawback for 35%.

Proceeds will be used for general corporate purposes.

The prospective issuer is a subsidiary of New Orleans-based energy services company McDermott International Inc.

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