HOUSTON, Dec. 2, 2019 /PRNewswire/ -- McDermott
International, Inc. (NYSE:MDR) ("McDermott" or the "Company")
announced today that it has been granted access to the second
tranche ("Tranche B") of the $1.7
billion superpriority senior secured credit facility (the
"Agreement") announced on October 21,
2019. Tranche B provides McDermott with a $250 million Term Loan Facility and a
$100 million Letter of Credit
Facility. The Company expects to utilize the amounts available
under Tranche B to continue financing working capital and support
the issuance of required performance guarantees on new
projects.
McDermott also announced that it has entered into a forbearance
agreement with holders of over 35 percent of McDermott's 10.625
percent senior notes due 2024 (the "2024 Notes"). Under the terms
of the forbearance agreement, the applicable holders of the 2024
Notes have agreed to forbear from exercising any rights related to
the interest payment due on November 1,
2019, subject to certain conditions. The forbearance period
extends through January 15, 2020, and
may be extended further by a majority of the holders party to the
forbearance agreement. McDermott is in discussions with additional
holders of the 2024 Notes and anticipates that additional holders
may execute the forbearance agreement in the coming days.
The Tranche B funding is expected to allow McDermott to continue
collaborative discussions regarding a long-term balance sheet
solution. In connection with the Tranche B funding, the required
lenders have agreed to amendments to the Agreement that would waive
certain conditions and modify cross-default provisions in order to
facilitate the Tranche B funding.
McDermott continues to pursue the previously announced strategic
alternatives process for Lummus Technology.
About McDermott
McDermott is a premier, fully
integrated provider of technology, engineering and construction
solutions to the energy industry. For more than a century,
customers have trusted McDermott to design and build end-to-end
infrastructure and technology solutions to transport and transform
oil and gas into the products the world needs today. Our
proprietary technologies, integrated expertise and comprehensive
solutions deliver certainty, innovation and added value to energy
projects around the world. Customers rely on McDermott to deliver
certainty to the most complex projects, from concept to
commissioning. It is called the "One McDermott Way." Operating in
over 54 countries, McDermott's locally focused and
globally-integrated resources include approximately 32,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe
Harbor provisions of the Private Securities Litigation Reform Act
of 1995, McDermott cautions that statements in this press release
which are forward-looking, and provide other than historical
information, involve risks, contingencies and uncertainties that
may impact McDermott's actual results of operations. These
forward-looking statements include, among other things, statements
about: the expected use of credit available under the Agreement;
measures being taken with respect to the Company's capital
structure, balance sheet, liquidity and strategic transactions; the
non-acceleration of the 2024 Notes; and satisfaction of conditions.
Although we believe that the expectations reflected in those
forward-looking statements are reasonable, we can give no assurance
that those expectations will prove to have been correct. Those
statements are made by using various underlying assumptions and are
subject to numerous risks, contingencies and uncertainties,
including, among others: risks attendant to ongoing negotiations
with various third parties; adverse changes in the markets in which
we operate or credit markets; our inability to successfully execute
on contracts in backlog; changes in project design or schedules;
the availability of qualified personnel; changes in the terms,
scope or timing of contracts; contract cancellations; change orders
and other modifications and actions by our customers and other
business counterparties; changes in industry norms; and adverse
outcomes in legal or other dispute resolution proceedings. If one
or more of these risks materialize, or if underlying assumptions
prove incorrect, actual results may vary materially from those
expected. For a more complete discussion of these and other risk
factors, please see McDermott's annual and quarterly filings with
the Securities and Exchange Commission, including its annual report
on Form 10-K for the year ended December 31,
2018 and subsequent quarterly reports on Form 10-Q. This
press release reflects management's views as of the date hereof.
Except to the extent required by applicable law, McDermott
undertakes no obligation to update or revise any forward-looking
statement.
Contacts:
Investor Relations
Scott
Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and
Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.
