McDermott (NYSE:MDR)
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From Jul 2019 to Jul 2024
McDermott International, Inc. (NYSE:MDR) (“McDermott”
or the “Company”)
announced today that it has recently completed amendments to two of its
subsidiaries’ outstanding credit facilities,
which have a combined borrowing and performance-related letter of credit
capacity of $900 million. Currently, there are no borrowings under
either facility, although approximately $510 million of combined
performance-related letters of credit are currently outstanding.
Following the previously announced upgrades from the major credit
ratings agencies, McDermott requested from its lenders a number of
modifications to these existing credit facilities. Among the significant
new financial terms, the amended facilities have lower applicable
margins for borrowings and letters of credit, which will save between
50-150 basis points annually compared to the previous cost. McDermott
estimates that it will realize approximately $5 million per year of
pretax savings, excluding initial arrangement fees, as a result of the
amended financial terms, subject to the revised ratings-based pricing
grid.
“McDermott appreciates the strong support of
the many financial institutions participating in our amended credit
facilities,” said Michael S. Taff, Senior Vice
President and Chief Financial Officer. “Both
of these facilities are now completely supported by commercial banks,
which demonstrates our improved credit profile, strong financial
relationships and the lenders’ confidence in
our respective subsidiaries.”
McDermott is an engineering and construction company, with specialty
manufacturing and service capabilities, focused on energy
infrastructure. McDermott’s customers are
predominantly utilities and other power generators, major and national
oil companies, and the United States Government. With its global
operations, McDermott operates in over 20 countries with more than
20,000 employees, and can be found on the internet at www.mcdermott.com.
In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, statements in this press release which
are forward-looking and provide other than historical information
involve risks and uncertainties that may adversely impact the
expectations expressed in these forward-looking statements. The
forward-looking statements in this press release include statements
regarding the annual savings expected to be realized as a result of the
amended facility. Those statements are made based on various underlying
assumptions and are subject to numerous uncertainties and risks,
including without limitation, adverse changes in the financial markets
and changes in our utilization rate. If this or other 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 report for the
year ended December 31, 2006 filed with the Securities and Exchange
Commission.