McDermott Int'l Prices Offering Of 10 Mln Tangible Equity Units

(RTTNews) - McDermott International Inc. (MDR) announced the pricing of underwritten public offering of 10 million 6.25% tangible equity units, each with a stated value of $25.00, which will result in net proceeds of about $242 million. Settlement of the offering is expected to occur on April 7, 2014. McDermott's common stock is listed on the New York Stock Exchange under the symbol "MDR."

In addition, the underwriter has a 13-day option to purchase up to an additional 1.5 million Units from McDermott.

Each Unit will consist of a prepaid stock purchase contract and an amortizing note. Unless earlier settled, each stock purchase contract will automatically settle on April 1, 2017 for a number of shares of McDermott's common stock that will equal at least 2.9030 and not more than 3.5562 shares.

The amortizing notes will pay proportionally equal cash quarterly installments of $0.3906 per note (except the first such installment, which will be $0.3646 per note). The amortizing notes will have a final installment payment date of April 1, 2017 and will be unsecured senior obligations of McDermott. McDermott intends to use offering net proceeds, together with proceeds expected to be received from other financing transactions relating to the refinancing of its outstanding credit agreement, for general corporate purposes.

Goldman, Sachs & Co. is serving as the sole book-running manager for the offering.