By Toni Weeks
San Luis Obispo, Calif. - Underwriters for McDermott International Inc.'s offering of tangible equity units fully exercised their over-allotment option, lifting the deal to $287.5 million.
The company priced 10 million units at $25.00 each with a greenshoe of an additional 1.5 million units on Tuesday with a 6.25% dividend and 22.5% appreciation premium, according to a press release.
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.
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: | $287.5 million (includes $37.5 million greenshoe)
|
| Units: | 11.5 million units (includes 1.5 million units from greenshoe)
|
| 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
|
| Greenshoe exercised: | April 2
|
| Settlement date: | April 7
|
| Distribution: | Registered
|
| Stock symbol: | NYSE: MDR
|
| Stock price: | $7.03 at close April 1
|
| Market capitalization: | $1.66 billion
|
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