McDermott in Financing Deal of Up to $1.7 Bln

Monday, October 21, 2019
(File photo: MCDermott International)

U.S. oilfield services company McDermott International Inc on Monday agreed with some of its lenders for additional funding of up to $1.7 billion, sending its shares up 25% in trading before the bell.

Under the terms, the company said it would have immediate access to $650 million in financing, comprising $550 million under a term loan facility and $100 million under a letter of credit facility.

"The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards," Chief Executive Officer David Dickson said.

The company said it intends to use the funds to finance working capital and support issuance of required performance guarantees new projects.

The Houston-based company also withdrew its full-year forecast. It had previously forecast 2019 revenue of $9.5 billion and an adjusted loss of 32 cents per share.

McDermott also said it had terminated its previously announced sale of its industrial storage tank business.


(Reporting by Shradha Singh in Bengaluru; Editing by Anil D'Silva)

Categories: Finance Energy Construction Installation

Related Stories

Cadeler Adds Wind Keeper WTIV to Fleet, Locking in Long-Term Vestas Deal

Cadeler Adds Wind Keeper WTIV to Fleet, Locking in Long-Term Vestas Deal

Chevron Emerges as Winner in ExxonMobil Dispute Over Guyana Oil Field

Chevron Emerges as Winner in ExxonMobil Dispute Over Guyana Oil Field

Siemens Gamesa Lines Up 63-Turbine Order for German Offshore Wind Farm

Siemens Gamesa Lines Up 63-Turbine Order for German Offshore Wind Farm

Current News

Vard Books Construction Order for CSOV Pair

ABL to Deliver Grid Works for 600MW French Offshore Wind Farm

Cadeler Adds Wind Keeper WTIV to Fleet, Locking in Long-Term Vestas Deal

Chevron Emerges as Winner in ExxonMobil Dispute Over Guyana Oil Field

Subscribe for OE Digital E‑News

Offshore Engineer Magazine