By Rebecca Melvin
New York, April 2 - McDermott International Inc. priced $250 million of tangible equity units, or 10 million units at $25.00 each, with a 6.25% dividend and 22.5% appreciation premium, according to a term sheet.
Pricing of the registered deal came at the rich end of talk for a 6.25% to 6.75% dividend and 17.5% to 22.5% appreciation premium.
There is a greenshoe for up to an additional $37.5 million of units.
Goldman Sachs & Co. was the bookrunning manager.
The units, comprised of a prepaid stock purchase price and a senior amortizing note, will automatically settle for shares on April 1, 2017.
Proceeds from the offering, together with proceeds expected to be received from other previously announced financing transactions relating to the refinancing of its outstanding credit agreement, are for general corporate purposes, including the funding of working capital requirements and capital expenditures.
McDermott is a Houston-based engineering, procurement, construction and installation company for offshore oil and gas projects.
| Issuer: | McDermott International Inc.
|
| Issue: | Tangible equity units
|
| Amount: | $250 million, or 10 million units at $25.00 each
|
| Greenshoe: | $37.5 million, or 1.5 million units
|
| Maturity: | April 17, 2017
|
| Bookrunner: | Goldman Sachs & Co.
|
| Dividend: | 6.25%
|
| Price: | Par, $25.00
|
| Yield: | 6.25%
|
| Initial appreciation premium: | 22.5%
|
| Threshold appreciation price: | $8.61
|
| Minimum settlement rate: | 2.9030 shares
|
| Maximum settlement rate: | 3.5562 shares
|
| Takeover protection: | Yes
|
| Price talk: | 6.25%-6.75%, up 17.5%-22.5%
|
| Pricing date: | April 1
|
| Settlement date: | April 7
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: MDR
|
| Stock price: | $7.03 at close April 1
|
| Market capitalization: | $1.66 billion
|
© 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.
