McDermott gets $300 million revolver, ups letter-of-credit capacity

By Angela McDaniels

Tacoma, Wash., July 3 – McDermott International, Inc. entered into a five-year amended and restated credit agreement that increases its letter-of-credit capacity to $810 million from $450 million and adds a $300 million revolving cash sublimit, according to a company news release.

Additionally, the agreement allows for current or new lenders to increase commitments up to a total of $1 billion.

The amended and restated facility will replace McDermott’s previous $450 million credit agreement dated April 16, 2014 and will extend the maturity until 2022, provided that McDermott’s senior secured notes are repaid by December 2020.

In conjunction with the amended and restated credit agreement, McDermott repaid in full the outstanding term loan under the previous credit agreement.

“The increased limit of the facility, the $300 million revolving cash sublimit, as well as the extended maturity are a culmination of the financial transformation McDermott has made over the past few years,” Stuart Spence, McDermott’s executive vice president and chief financial officer, said in the news release.

“The increased facility capacity ... provides us with a simplified capital structure, increased balance sheet flexibility and positions us well for future growth.”

Houston-based McDermott provides engineering, procurement, construction and installation services for upstream field developments.

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