Story details
McDermott announced completion of a comprehensive refinancing on September 21. The package includes a $500 million equity rights offering to existing shareholders and $550 million of senior secured Nordic bonds due in 2031. The company describes the transactions as a restructuring of its financing arrangements.
Class A ordinary shareholders subscribed to 97% of the equity offering; related backstop commitments completed the balance. The bond issue was placed in the Nordic market. The package also includes a new long-term letter-of-credit and guarantee facility and a revolving credit facility. The release does not state the limits of those facilities.
McDermott says the transactions are designed to extend its maturity profile, further deleverage its balance sheet and provide long-term financing certainty. The company links those aims to executing its global backlog and pursuing disciplined growth opportunities. This is management’s account of the expected effect; the announcement does not report a measured post-transaction change in leverage or confirm that those benefits have already been achieved.
The refinancing is a corporate financing event, not investment in an energy plant or the award of a new EPC contract. It combines equity and debt issuance with credit and guarantee facilities to change the company’s capital structure. The release provides no new cash-flow forecast, facility project or specific contractor award. Completion of the financing is reported; future commercial outcomes remain expectations described by the company.
The $500 million equity component was raised through a rights offering to existing shareholders; 97% participation by Class A shareholders and backstop commitments completed it. The secured bond due in 2031 adds a separate element to the debt maturity profile. Because the letter-of-credit, guarantee and revolving-credit limits were not disclosed, total available financing cannot be assumed to equal the two issuance amounts alone.