McDermott launches $2.15 billion term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, March 5 – McDermott International Inc. launched on Monday its $2.15 billion seven-year first-lien term loan with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Barclays, Credit Agricole, Goldman Sachs Bank USA, MUFG, ABN Amro, RBC Capital Markets and Standard Chartered are the lead arrangers on the deal. Barclays is the administrative agent.

Commitments are due at noon ET on March 21.

Proceeds will be used to refinance existing debt, to cash collateralize letters of credit and to pay related fees and expenses.

Pro forma first-lien net leverage is 0.7 times and net total leverage is 1.8 times, the source added.

McDermott is a Houston-based provider of integrated engineering, procurement, construction and installation, front-end engineering and design and module fabrication services for upstream field developments.

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