McDermott Secures $560mn of New Capital

US engineering and construction firm McDermott International said November 18 it had secured $560mn of new capital to strengthen its balance sheet and fund future growth.

The funding was secured through a series of transactions expected to close by the end of the year. Commitments have been secured from existing lenders and shareholders (investors) for these transactions, which have also been approved from a steering committee of certain creditors.

“The support of the investors and the steering Committee reflects their confidence in our long-term business strategy and competitive position,” McDermott CEO David Dickson said. “Following on the heels of a successful restructuring earlier this year, this additional capital will further solidify our liquidity position, enabling us to continue to deliver superior project execution for our customers and consistently pursue new growth opportunities as demand for our expertise and capabilities increases.”

About $390mn of the total is in the form of a new letter of credit from existing lenders, while another $170mn will be raised from a common share issue to certain existing shareholders that has been backstopped by the investors.