McDermott International gets $900 million revolving credit facility

By Sara Rosenberg

New York, May 7 - McDermott International Inc. and its subsidiary, J. Ray McDermott SA, closed on a new $900 million revolving credit facility due May 3, 2014, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Crédit Agricole Corporate and Investment Bank, Bank of America and Wells Fargo acted as the joint lead arrangers and bookrunners on the deal that was completed on May 3, with Crédit Agricole the agent.

Initial pricing on the revolver is Libor plus 300 basis points with a 50 bps commitment fee. Pricing can range from Libor plus 250 bps to 350 bps, and the commitment fee can range from 37.5 bps to 62.5 bps, based on ratings.

There is a $300 million accordion feature.

Proceeds were used to refinance an existing $800 million revolver and are available for working capital needs and other general corporate purposes.

At close, there was approximately $160 million drawn under the revolver and $204.6 million of outstanding letters of credit.

McDermott is a Houston-based engineering and construction company.

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