McDermott Sets Its 8 Percent Second Lien Notes Value at $500 Mln

McDermott International, Inc. announced the pricing of $500 million in aggregate principal amount of 8.00% second-lien senior secured notes due 2021.

EPCI Contract for McDermott in Arabian Gulf

Settlement of the offering is expected to occur on April 16, 2014, subject to customary closing conditions. At closing, the Notes will be issued at a price of 100.00% of the principal amount.

The Notes will be offered only to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to certain non-U.S. persons in transactions outside the United States under Regulation S under the Securities Act.

The private placement is expected to result in net proceeds to McDermott of approximately $491 million. McDermott intends to use the net proceeds from the offering of the Notes, together with other financing sources (including proceeds expected to be received in connection with the refinancing of its outstanding credit agreement with a new first-lien credit facility), to refinance revolving credit facility indebtedness outstanding under its existing credit agreement and for other general corporate purposes, including the funding of working capital requirements and capital expenditures.

The Notes have not been and will not be registered under the Securities Act or any state securities laws; and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Press Release, April 11, 2014