Credit Suisse launched syndication of a $500 million deal for J. Ray McDermott that refinances existing debt. The new credit consists of a five-year, $400 million revolver and a six-year, $100 million synthetic letter of credit. Pricing could not be determined by press time. A bank meeting was held last Tuesday.
The company plans to tender for its 11% senior secured notes due 2013, $200 million worth, with cash on hand. The tender offer and credit are expected to close concurrently in June. Standard & Poor's assigned a B+ rating the credit and Moody's Investors Service assigned a B1 rating to the loan.
J. Ray McDermott provides engineering, construction and installation services for offshore oil and gas field developments worldwide. Calls to Bob Deason, president and chief operating officer, were referred to a spokesman at McDermott International J. Ray McDermott's parent company who was traveling and did not return calls.