J. Ray McDermott Announces Pricing and Preliminary Results of Tender Offer
17 Mai 2006 - 5:02PM
Business Wire
J. Ray McDermott, S.A. ("J. Ray"), a subsidiary of McDermott
International, Inc. ("McDermott") (NYSE:MDR), announced today the
pricing terms of its previously announced cash tender offer and
consent solicitation (collectively, the "Offer") to purchase all of
J. Ray's outstanding 11% Senior Secured Notes due 2013 (the
"Notes"), with an aggregate principal amount of $200 million
outstanding. The Offer remains open and is scheduled to expire at
5:00 p.m., New York City time, on June 1, 2006, unless otherwise
extended (the "Expiration Date"). Through May 16, 2006, 100 percent
of the Notes have been tendered in the Offer. In connection with
the Offer, J. Ray is soliciting consents from holders of the Notes
to (i) amend the indenture governing the Notes to eliminate or
modify most of the restrictive covenants and certain other
provisions of the Notes and the indenture and (ii) authorize
amendments to collateral documents that provide security for the
Notes, in order to allow J. Ray and its subsidiaries to grant
second-priority liens on the collateral. The total consideration
for the Notes was determined as of 10:00 a.m., New York City time,
May 17, 2006 by reference to a fixed spread of 50 basis points over
the yield on the 3.375% U.S. Treasury Note due December 15, 2008.
The total consideration per $1,000 principal amount of the Notes
validly tendered at or prior to 5:00 p.m., New York City time, on
May 16, 2006 (the "Consent Date") and accepted for payment will be
$1,187.19. The total consideration includes a cash consent payment
of $30 per $1,000 principal amount of the Notes. Holders of Notes
validly tendered and accepted for payment will also receive accrued
and unpaid interest (including additional interest payable pursuant
to the Registration Rights Agreement relating to the Notes) on
their Notes up to, but not including, the settlement date for the
tender offer and consent solicitation, which will be promptly
following the Expiration Date. As of the Consent Date, J. Ray had
received tenders and consents for $200 million in aggregate
principal amount of the Notes, representing all of the outstanding
Notes, and satisfying a condition to the Offer that J. Ray receive
consents from holders of at least two-thirds of the principal
amount of the Notes. The Offer is subject to the satisfaction of
certain conditions, including, among other things, the receipt of
consents from holders of at least two-thirds of the principal
amount of the Notes (which J. Ray has obtained) and completion of a
proposed senior secured credit facility of up to $500 million. All
terms and conditions of the Offer are set forth in J. Ray's Offer
to Purchase and Consent Solicitation Statement dated May 3, 2006
(the "Statement") and the related Letter of Transmittal and
Consent. Subject to applicable law, J. Ray may, at its sole
discretion, waive any condition applicable to the Offer or extend,
terminate or otherwise amend the Offer. Neither Notes tendered
pursuant to the Offer nor the related consents may be withdrawn or
revoked unless the Offer is not consummated, except to the extent
required by applicable law. Credit Suisse Securities (USA) LLC is
serving as Dealer Manager and Solicitation Agent, Morrow &
Company, Inc. is serving as Information Agent and The Bank of New
York is acting as Depositary in connection with the Offer.
Questions regarding the Offer may be directed toll-free to the
Dealer Manager at 800-820-1653 or collect at 212-538-0652. Requests
for documentation may be directed toll-free to the Information
Agent at 800-607-0088. This announcement is not an offer to
purchase, a solicitation of an offer to purchase or a solicitation
of an offer to sell securities, with respect to any of the Notes.
The Offer is being made solely pursuant to the terms of the
Statement and related Letter of Transmittal and Consent. Each Note
holder should read the Statement and accompanying documents, as
they contain important information. None of the companies
referenced herein, including J. Ray McDermott or any of the agents,
make any recommendation in connection with the Offer. J. Ray
McDermott is a leading provider of engineering, procurement,
construction, and installation services for offshore oil and gas
field developments worldwide. McDermott International, Inc. is a
leading worldwide energy services company. McDermott's subsidiaries
provide engineering, construction, installation, procurement,
research, manufacturing, environmental systems, project management
and facility management services to a variety of customers in the
energy and power industries, including the U.S. Department of
Energy. In accordance with the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995, McDermott
cautions that statements in this press release, which are
forward-looking and provide other than historical information,
involve risks and uncertainties that may impact actual outcomes.
These forward-looking statements include our statements regarding
the costs, terms, conditions, completion and schedule of the Offer.
Those statements are subject to numerous uncertainties and risks
including, without limitation, that the Offer may not be
consummated on the terms described herein or that Notes tendered
pursuant to the Offer may not be accepted for payment. For a more
complete discussion of these risk factors, please see McDermott's
filings with the Securities and Exchange Commission, including its
annual report for the year ended December 31, 2005.
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