McDermott flexes $300 million term loan talk to Libor plus 450-475 bps

By Sara Rosenberg

New York, April 7 - McDermott International Inc. trimmed price talk on its $300 million five-year term loan B to Libor plus 450 basis points to 475 bps from Libor plus 525 bps to 550 bps, according to market sources.

Additionally, the original issue discount on the term loan was revised to 99½ from 99 and the call protection was changed to non-callable for one year then a soft call of 101 in year two, from non-callable for one year, then soft call protection of 102 in year two and 101 in year three, sources said.

The term loan still has a 1% Libor floor.

The company's $700 million of new bank debt (Ba1/BB+) also includes a $400 million three-year first-out letter-of-credit facility.

Recommitments are due on Wednesday, sources added.

Goldman Sachs Bank USA is the lead bank on the deal.

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.

Other funds for the refinancing are expected to come from second-lien senior secured notes due 2021.

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.