McDermott gains access to $250 million term loan, $100 LoC facility

By Angela McDaniels

Tacoma, Wash., Dec. 2 – McDermott International, Inc. was granted access to tranche B of its $1.7 billion super-priority senior secured credit facility, according to a company news release.

Tranche B provides McDermott with a $250 million term loan and a $100 million letter-of-credit facility.

The company expects to use the amounts available under tranche B to continue financing working capital and support the issuance of required performance guarantees on new projects.

McDermott expects tranche B to allow it to continue “collaborative discussions” about a “long-term balance sheet solution.”

In connection with the tranche B funding, the required lenders have agreed to amendments to the credit agreement that would waive certain conditions and modify cross-default provisions in order to facilitate the tranche B funding.

McDermott is a Houston-based provider of technology, engineering and construction solutions to the energy industry.

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