McDermott Secures $1.7B Funding
- Business & Finance
McDermott has entered into an agreement with certain of its secured lenders under which the company will have access to up to $1.7 billion of additional financing, including letter of credit capacity.
Under the terms of the agreement, McDermott will 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.
The company expects to utilize the amounts available to finance working capital and support the issuance of required performance guarantees on new projects.
“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,” said David Dickson, president and CEO of McDermott. “The Agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards. We remain focused on serving our customers’ needs, supporting our dedicated employees and maintaining our valued relationships with our subcontractors, suppliers and other business counterparties, all as part of our efforts to enhance our position as a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry.”