McDermott International, Inc. Announces Pricing of $500 Million 8.00% Second-Lien Senior Secured Notes Due 2021
11 April 2014 - 6:45AM
Business Wire
McDermott International, Inc. (NYSE: MDR) today announced the
pricing of $500 million in aggregate principal amount of 8.00%
second-lien senior secured notes due 2021 (the “Notes”). 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.
This press release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy the Notes or any other securities, nor shall there be any sale
of Notes or any other securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Forward-Looking Statements
All statements other than statements of historical fact included
in this release are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release relate to, among
other things, the timing of the closing, the expected use of
proceeds and other aspects of the offering and expected proceeds
from other transactions. Although we believe that the expectations
reflected in those forward-looking statements are reasonable, we
can give no assurance that those expectations will prove to have
been correct. Those statements are made by using various underlying
assumptions and are subject to various uncertainties. This news
release reflects expectations as of the date hereof. Except to the
extent required by applicable law, McDermott undertakes no
obligation to update or revise any forward-looking statement.
McDermott International, Inc.Investors, Analysts and Financial
Media:Steven D. Oldham,(281) 870-5147Vice President, Treasurer and
Investor Relationssoldham@mcdermott.com
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