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Item 1.01
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Entry into a Material Definitive Agreement.
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As previously disclosed, on April 18,
2016, McDermott International, Inc. (“McDermott”), McDermott Finance L.L.C. and certain of McDermott’s wholly owned subsidiaries, as guarantors, entered into an Amendment No. 3 to Credit Agreement and Amendment to Pledge and
Security Agreement (“Amendment No. 3”), modifying the credit agreement dated April 16, 2014, among the LC Borrower, the Term Borrower, Crédit Agricole Corporate and Investment Bank, as administrative agent and collateral
agent, and the lenders and letter of credit issuers party thereto.
On May 13, 2016, McDermott satisfied the conditions to the
“extension effective date” set forth in Amendment No. 3.
On May 12, 2016, McDermott, McDermott Finance L.L.C. and certain of
McDermott’s wholly owned subsidiaries, as guarantors, entered into an Amendment No. 4 to Credit Agreement (“Amendment No. 4”), modifying the credit agreement dated April 16, 2014, among the LC Borrower, the Term
Borrower, Crédit Agricole Corporate and Investment Bank, as administrative agent and collateral agent, and the lenders party thereto (as amended, the “Credit Agreement”).
Amendment No. 4 amended the Credit Agreement to, among other things:
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increase the applicable margin payable on the term loan thereunder by 3.0% per annum; and
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require that the net cash proceeds of any sale (including a sale and leaseback) of the
DLV 2000
be applied as a mandatory prepayment of the term loan thereunder.
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On May 13, 2016, McDermott voluntarily prepaid $75.0 million of the term loan under the Credit Agreement and satisfied the other conditions to
the “effective date” set forth in Amendment No. 4.
The aggregate letter of credit commitments under the Credit Agreement
are now $450.0 million, and the maturity date of such letter of credit facility commitments is now April 22, 2019, unless the term loan under the Credit Agreement has not been repaid or refinanced by January 15, 2019, in which case the
letter of credit facility commitments will expire on January 15, 2019.
The foregoing description of Amendment No. 3 is
qualified in its entirety by reference to Amendment No. 3, attached as Exhibit 4.1 to McDermott’s Current Report on Form 8-K filed on April 18, 2016, which is incorporated by reference herein. The foregoing summary of Amendment
No. 4 is qualified in its entirety by reference to the complete text of Amendment No. 4, which is filed as Exhibit 4.1 to this report and is incorporated by reference herein.