US Markets

McDermott International in financing deal of up to $1.7 bln

U.S. oilfield services company McDermott International Inc on Monday agreed with some of its lenders for additional funding of up to $1.7 billion, sending its shares up 25% in trading before the bell.

Oct 21 (Reuters) - U.S. oilfield services company McDermott International Inc MDR.N on Monday agreed with some of its lenders for additional funding of up to $1.7 billion, sending its shares up 25% in trading before the bell.

Under the terms, the company said it would have immediate access to $650 million in financing, comprising $550 million under a term loan facility and $100 million under a letter of credit facility.

"The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards," Chief Executive Officer David Dickson said.

The company said it intends to use the funds to finance working capital and support issuance of required performance guarantees new projects.

The Houston-based company also withdrew its full-year forecast. It had previously forecast 2019 revenue of $9.5 billion and an adjusted loss of 32 cents per share.

McDermott also said it had terminated its previously announced sale of its industrial storage tank business.

(Reporting by Shradha Singh in Bengaluru; Editing by Anil D'Silva)

((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780 Ext: 2439, outside U.S. +91 80 6749 2439;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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