McDermott to get access to $1.7 billion of new financing

U.S. engineering firm McDermott has entered into an agreement with lenders under which the company will have access to up to $1.7 billion of additional financing, including a letter of credit capacity.

Source: McDermott

McDermott said on Monday that the company would have immediate access to $650 million of financing comprised of $550 million under a term loan facility and $100 million under a letter of credit facility, before reduction for related transaction fees and expenses.

According to the company, it expects to utilize the amounts available under the agreement to finance working capital and support the issuance of required performance guarantees on new projects.

David Dickson, president and CEO of McDermott, said: “This new credit agreement is a continued signal from our lenders that they support McDermott, our underlying business, growth strategy, and ability to achieve a long-term balance sheet solution.

“The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards.”

McDermott added that it was still pursuing the previously announced strategic alternatives process for Lummus Technology and the sale process for the remaining portion of the pipe fabrication business. The company did decide to terminate its previously announced sale process for its industrial storage tank business.

McDermott also announced that it is withdrawing its previously stated guidance for full-year 2019.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Posted on October 21, 2019 with tags .

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply