Milbank, Tweed, Hadley & McCloy LLP represented Goldman Sachs Lending Partners LLC as sole lead arranger and sole bookrunner in connection with a $300 million senior secured first-lien term loan facility for McDermott Finance L.L.C., a subsidiary of McDermott International, Inc. (NYSE: MDR) (“McDermott”), and Goldman, Sachs & Co. as sole book-running manager in connection with an offering of $500 million of senior secured second-lien notes by McDermott and an offering of tangible equity units by McDermott generating gross proceeds of $287.5 million. The transactions closed in April 2014. Concurrently with the transactions, McDermott also obtained a $400 million senior secured first-lien letter of credit facility.
McDermott is a leading engineering, procurement, construction and installation company focused on designing and executing complex offshore oil and gas projects worldwide.
The proceeds of the senior secured first-lien term loan facility, the senior secured second-lien notes and the senior secured first-lien letter of credit facility were used to refinance McDermott’s outstanding indebtedness under existing credit facilities and are being used for other general corporate purposes, including funding working capital requirements and capital expenditures. The proceeds of the tangible equity units are being used for general corporate purposes.
In March 2014, Milbank represented Goldman Sachs Lending Partners LLC in connection with entering into a commitment letter with McDermott to provide a $950 million senior secured bridge loan facility. In connection with the transactions described above, the commitment letter was terminated.
The Milbank Global Leveraged Finance team was led by partner Marc Hanrahan and included associates Charles Stern, Spencer Pepper and Brett Pallin. The Milbank Global Securities team was led by partner Rod Miller and included associates Ben Miles, Kaveh Namazie and John Ablan. Also providing advice on the transactions were Transportation & Space partner James Cameron, special counsel Caroline Cowie and associate Russell King.
