McDermott has completed comprehensive financing worth $1.05 billion, which includes $500 million in equity financing and $550 million in secured bond issuance. This move helps strengthen the balance sheet of this engineering and construction company as it executes its global projects.
Details of Equity Financing
The $500 million financing was conducted through a rights offering to existing shareholders. McDermott announced that this offering was 97 percent subscribed by Class A common shareholders, with the remainder completed through related support commitments.
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Bond Issuance and Other Financial Facilities
The company also issued $550 million in secured bonds in the Nordic market, maturing in 2031. Additional components of the financing include establishing a new long-term letter of credit and guarantee facility and a revolving credit facility; however, McDermott did not disclose the value of these facilities.
Overall, these transactions are designed to enhance McDermott's maturity profile, reduce balance sheet leverage, and provide long-term financial certainty while the company continues to execute existing projects and pursue new opportunities.
Michael McKelvey, CEO and President of McDermott, stated, "This financing represents the support and confidence that shareholders, lenders, and bond investors have shown in our strategy, performance, and future." He added that this deal provides a financial foundation for the company to focus on executing its projects and continue its growth.
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