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McDermott plans credit facility amendment, gets bridge loan commitment
By Sara Rosenberg
New York, March 4 - McDermott International Inc. is in talks with lenders about an amendment to its credit facility that would revise financial covenants and potentially restructure the form and amount of borrowing limits, according to a 10-K filed late Monday with the Securities and Exchange Commission.
While the amendment is being negotiated, the company has received a commitment for a $950 million one-year senior secured covenant-light bridge loan that would be available to provide funded capacity for letters of credit, as well as funding for working capital and general corporate purposes.
However, once the amendment is completed, the company expects to terminate the bridge loan commitment.
Goldman Sachs Lending Partners LLC is the lead bank on the bridge loan.
Pricing on the bridge loan is Libor plus 650 basis points, increasing by 50 bps every three months until it hits a specified cap. The debt has a 1% Libor floor.
The bridge loan commitment letter expires on April 25.
McDermott is a Houston-based engineering, procurement, construction and installation company for offshore oil and gas projects.
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