McDermott International completed its merger with Chicago Bridge & Iron, creating a fully integrated provider of technology, engineering and construction solutions for the energy industry.

According to a related 8-K filing, the company completed a credit agreement to support the transaction with Barclays Bank as administrative agent for the term loan and Credit Agricole as agent for the other facilities under the agreement.

The credit agreement provides for borrowings and letters of credit in the aggregate principal amount of $4.65 billion, consisting of the following:

  • $2.26 billion senior secured term loan facility the full amount of which was borrowed, and $319.3 million of which has been deposited into a cash collateral account to secure reimbursement obligations in respect of up to $310.0 million of letters of credit
  • $1 billion senior secured revolving credit facility
  • $1.39 billion senior secured letter of credit facility

The credit agreement stipulates the term facility letters of credit can be issued in an amount up to the amount on deposit in the LC account, less an amount equal to approximately 3% of such amount on deposit.

“This is an exciting day for McDermott,” said David Dickson, president and CEO of McDermott. “The combination of McDermott and CB&I brings together a global upstream and subsea engineering, procurement and construction company with an established downstream provider of industry-leading petrochemical, refining, power, gasification and gas processing technologies and solutions—creating a company that spans the entire value chain from concept to commissioning.”

As a result of the combination, CB&I common stock will no longer be listed on the New York Stock Exchange and ceased trading prior to the open of the market on May 11, 2018.