#United States #Houston #McDermott International #refinancing #Capital Structure

McDermott International Completes Successful Refinancing

In a significant step toward bolstering its financial foundation and growth trajectory, McDermott International, Ltd. has announced the successful completion of a comprehensive refinancing initiative. This milestone, revealed on September 21, 2026, includes a robust $500 million equity rights offering and a notable $550 million issuance of senior secured bonds in the Nordic market. Additionally, the company has established a new long-term letter of credit facility to further enhance its financial position.

The refinancing strategy is a testament to the firm's resilient operational and financial track record, characterized by effective project execution and a disciplined bidding approach. This solid framework is expected to position McDermott for sustainable growth as it seeks to meet the demands of its global project backlog and capitalize on targeted growth opportunities.

Michael McKelvy, the Chief Executive Officer and Chair of the Board at McDermott, emphasized the trust and support the company has from its shareholders and investors. He stated, "This refinancing reflects the continued support and confidence our shareholders, lenders, and bond investors have shown in our strategy, performance, and future. We believe the successful completion of this transaction positions McDermott with the financial foundation to continue building on the momentum we've established through strong project delivery and a relentless focus on serving our customers."

The refinancing package consists of several key components:
1. $500 Million Equity Financing: This was raised through a rights offering to existing shareholders, with an impressive 97% of the shares subscribed by Class A ordinary shareholders. The completion was supported by backstop commitments to ensure financial stability.
2. $550 Million Senior Secured Bond Issuance: This issuance is due in 2031 and is aimed at providing further liquidity and support for the company's strategic objectives in the evolving energy sector.
3. Long-term Letter of Credit Facility: This new facility will enhance McDermott's operational flexibility and capacity to undertake larger projects, underpinning their commitment to high levels of service delivery.
4. Revolving Credit Facility: Designed to provide added financial resilience and operational liquidity, further ensuring stability and growth prospects.

The cumulative effect of these transactions is intended to extend McDermott's maturity profile, reduce leverage on their balance sheet, and ensure long-term financial certainty in an ever-changing market.

As a leader in engineering and construction solutions within the energy industry, McDermott operates in over 30 countries, employing over 30,000 individuals. The company’s expertise spans from energy resource engineering to infrastructure solutions, supported by a diverse fleet of marine construction vessels and fabrication facilities.

The strategic refinancing not only sets a strong precedent for McDermott's future endeavors but also reinforces their focus on delivering customer value. The company is dedicated to harnessing and transforming energy resources in a responsible manner, aligning with global trends toward sustainability.

In conclusion, McDermott's successful refinancing initiative marks a pivotal moment in its evolution, ensuring that it remains agile and robust in the dynamic landscape of the energy sector. With a solid capital structure in place, the company is well-positioned to navigate the challenges ahead and embrace the opportunities of tomorrow, fostering a brighter and more sustainable energy future.

For more information, visit McDermott's official website.