McDermott International may get new first-lien credit facility

By Sara Rosenberg

New York, March 28 - McDermott International Inc. expects to get a new first-lien credit facility that may include an up to $400 million term loan and a letter-of-credit facility, according to a news release.

The company also intends to issue $500 million of second-lien senior secured notes due 2021.

Proceeds from the new debt will be used to refinance revolver borrowings and for other general corporate purposes, including the funding of working capital requirements and capital expenditures.

Previously, the company had said that it 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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.