McDermott in Financing Deal of Up to $1.7 Bln

Monday, October 21, 2019

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

Subsea Vessel Market is Full Steam Ahead

Russian Oil Companies Told to Boost Fuel Supply to Domestic Market

Leaky Platforms: Pemex Knocked for Delayed Repairs, "Vast" Methane Leaks

Argeo Inks Pact with CSI for Second HUGIN Superior AUV

Big Oil Execs Push Back Against Calls for Fast Energy Transition

Mermaid Sets Up Subsea Services JV in Vietnam

Quick Connect: OAL Subsea Pipeline Completed

Digitalization is Drawing CCS a New Learning Curve

The APAC Offshore Market: Riding the Wave of Success into 2024 and Beyond

QatarEnergy Signs 15-year LNG Supply Deal with Excelerate Energy

Current News

Unique Group Acquires Subsea Innovation

ConocoPhillips Misses Quarterly Profit Estimates

Taliban Plan Regional Energy Trade Hub with Russian Oil in Mind

Russia Shipping Oil to North Korea Above UN Mandated Levels

Yinson Completes $1.3B Financing for Agogo FPSO

Sapura Energy Hooks Subsea Services Contract from Thai Oil Major Off Malaysia

Philippines' PXP Energy Eyes Petroleum Blocks in Non-Disputed Areas

BP Suspends Production at Azerbaijani Platform for Maintenance Works

SOVs – Analyzing Current, Future Demand Drivers

Decarbonization Offshore O&G: Navigating the Path Forward

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com