Daily News: July 6, 2017

Crédit Agricole Agents $1.1B Facility for McDermott


McDermott International entered into a five-year credit agreement with $810 million of capacity for letters of credit and a $300 million revolving cash sublimit. The agreement also allows for current or new lenders to increase commitments up to a total of $1 billion.

According to a related 8-K filing, Crédit Agricole served as administrative agent and collateral agent for the transaction. Crédit Agricole, Wells Fargo Securities, ABN AMRO Capital USA, BBVA Compass and ING Capital served as joint lead arrangers and joint bookrunners. Well Fargo was syndication agent. ABN AMRO Capital, BBVA Compass and ING Capital were co-documentation agents.

The amended and restated facility will replace McDermott’s previous $450 million credit agreement dated April 16, 2014 and will extend the maturity until 2022, provided that McDermott’s existing senior secured notes are repaid by December 2020. In conjunction with the amended and restated credit agreement, McDermott repaid in full the outstanding term loan under its previous credit agreement.

“The increased limit of the facility, the $300 million revolving cash sublimit, as well as the extended maturity are a culmination of the financial transformation McDermott has made over the past few years,” said Stuart Spence, McDermott’s executive vice president and chief financial officer. “The increased facility capacity underscores the confidence and support shown by our current and new lenders entering the facility and provides us with a simplified capital structure, increased balance sheet flexibility and positions us well for future growth.”

McDermott is a provider of integrated engineering, procurement, construction and installation services for upstream field developments worldwide.