McDermott International Ltd. picked up more than $250 million in new capital and reached a transaction support agreement with 75% of its creditors and equity holders in a restructuring move.
The agreement will allow the engineering and construction firm to operate its business, deliver on existing projects and expand backlog with new client projects, according to a Sept. 8 press release.
Under the terms of the agreement, McDermott will amend and extend its term loans and letter of credit facilities through mid-2027 with no change in pricing. The agreement also increases the company's liquidity and discharges certain legacy legal liabilities.
The transaction will require legal and regulatory approvals by authorities in the U.K., the U.S. and the Netherlands.
"Over the past 24 months, our executive leadership has made transformative progress in resetting and implementing our business strategy by leveraging the strength of our operating business and tailoring our approach to our core clients," said Michael McKelvy, McDermott president and CEO. "We are pleased to have reached this agreement with our key stakeholders, which demonstrates their confidence in the long-term strength and sustainability of our business. These proactive steps ensure that McDermott is strongly positioned to deliver on our growing number of client projects as we continue our important work of accelerating the energy transition in our industry."
Kirkland & Ellis LLP and NautaDutilh are serving as legal counsel to McDermott. Credit Suisse is serving as the company's financial adviser and Alvarez & Marsal is serving as restructuring adviser.
PJT Partners is serving as financial adviser for an ad hoc group of McDermott's lenders and equity holders and Davis Polk & Wardwell LLP, Weil, Gotshal & Manges and Loyens & Loeff are serving as the ad hoc group's legal counsel.
FTI Consulting is serving as financing adviser for the steering committee of McDermott's bank lenders, and Linklaters LLP and Bracewell LLP are serving as the steering committee's legal counsel.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.