McDermott's key financing to strengthen its storage tanks business
Arias, Fábrega & Fábrega, acted as Panamanian counsel to McDermott International Ltd. and, on an Ethical Wall, to the Lenders, in connection with its entry into certain secured term loan and letter of credit facilities for McDermott and certain of its subsidiaries involved in its storage tanks business; and the amendment of its existing exit credit facilities.
The financings included up to US$253.6 million in letter of credit facilities as well as US$250 million in term loan commitments and are designed to strengthen its world-leading storage tank business under CB&I Storage Solutions.
Both the additional facilities were entered into in parallel and simultaneously with McDermott’s entry into certain Transaction Support Agreements and corresponding amendments to certain term loan and Letter of Credit facilities in connection with a financial restructuring process designed to strengthen McDermott’s capital structure.
Michael McKelvy, President & CEO of McDermott, noted that McDermott was “pleased to have reached this agreement with our [their] key stakeholders, which demonstrates their confidence in the long-term strength and sustainability” of McDermott’s business.
Establishing an Ethical Wall, the ARIFA banking and finance team assisted Agricole and Barclays as Lenders in connection with the release and creation of new security interests on Panamanian collateral..