McDermott Completes Amendments to Credit Facilities
27 July 2007 - 7:10AM
Business Wire
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.
McDermott (NYSE:MDR)
Historical Stock Chart
From Jun 2024 to Jul 2024
McDermott (NYSE:MDR)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about McDermott International Inc (New York Stock Exchange): 0 recent articles
More McDermott International, Inc. News Articles