| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for McDermott International, Inc. > News item |
McDermott downsizes notes offering to $1.3 billion, withdraws eight-year notes; pricing Thursday
By Paul A. Harris
Portland, Ore., March 28 – McDermott International Inc. downsized its offering of senior notes (B2/B-) to $1.3 billion from $1.5 billion, market sources said on Wednesday.
In addition, the Houston-based engineering and design company withdrew its long-dated tranche of notes, which would have come with an eight-year maturity, from the bond deal it has in the market.
The revised offering now features $1.3 billion of six-year notes, upsized from $950 million.
Official price talk is pending. Initial talk had the deal coming to yield 8 3/8% to 8½%; however, that talk is moving wider, a trader said on Wednesday morning.
The bonds are expected to price on Thursday.
Joint global coordinator and joint bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S for life notes. Credit Agricole CIB is also a joint global coordinator and joint bookrunner. ABN Amro, Goldman Sachs & Co., MUFG and RBC Capital Markets LLC are also joint bookrunners.
Standard Chartered Bank is the co-manager.
Pareto Securities is the Nordic manager.
The notes become callable after three years at par plus 75% of the coupon, feature a 35% equity clawback at par plus the coupon and are putable at 101% upon a change of control.
The issuing entities will be special purpose vehicles McDermott Technology (Americas), Inc. and McDermott Technology (US), Inc.
The deal is coming in connection with the merger of McDermott and Chicago Bridge and Iron (CB&I). Proceeds will be used to repay debt at both entities and for general corporate purposes.
The $200 million amount by which the bond offer is downsized will be made up by increasing the term loan by the same amount, moving the loan size to $2.26 billion from a revised amount of $2.06 billion. The loan had previously been downsized from $2.15 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.