Houston-based McDermott International has entered into an agreement with some of its secured lenders to give it access to up to $1.7bn of additional financing, including letter of credit capacity.
McDermott will have immediate access to $650m, and expects to utilise the amounts available to finance working capital and support performance guarantees on new projects.
David Dickson, president and CEO of McDermott, commented: “The Agreement provides near-term liquidity for the Company to manage working capital and provide performance guarantees on expected new awards. We remain focused on serving our customers’ needs, supporting our dedicated employees and maintaining our valued relationships with our subcontractors, suppliers and other business counterparties, all as part of our efforts to enhance our position as a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry.”
McDermott added that it is continuing to pursue strategic alternatives for Lummus Technology and the sale process for the remaining portion of the pipe fabrication business. The company terminated its previously announced sale process for its industrial storage tank business.