We are advising an ad hoc group of crossover lenders in connection with the TSA and financing

Davis Polk is advising an ad hoc group of crossover lenders of McDermott International, Ltd. in connection with the filing of a U.K. restructuring and Dutch reorganization process and a $475 million financing. On September 8, 2023, the ad hoc group and various other lenders to McDermott, including a steering committee of financial institutions, entered into a transaction support agreement (TSA) to support U.K. and Dutch reorganization proceedings that will, among other things, extend the maturities of the company’s existing letter of credit and term loan facilities. The TSA received substantial support from holders of each of the company’s tranches of debt.

Also on September 8, McDermott engaged in a financing transaction consisting of a $250 million new money term loan provided by certain members of the ad hoc group, which will be supported by approximately $225 million of letters of credit and commitments from existing lenders, including members of the ad hoc group. Following the signing of the TSA and closing of the financing transaction, McDermott launched a practice statement letter for the U.K. restructuring proceedings and a start declaration in respect of the Dutch restructuring proceedings.

McDermott is a fully integrated provider of engineering, procurement, construction and installation and technology solutions to the energy industry. McDermott’s proprietary technologies and services are utilized for offshore, subsea, power, liquefied natural gas and downstream energy projects around the world. Its customers include national, major integrated and other oil and gas companies and producers of petrochemicals and electric power. In 2020, McDermott filed for, and emerged from, chapter 11 proceedings in the United States in which Davis Polk represented an ad hoc group of creditors of McDermott.

The Davis Polk restructuring team includes partners Damian S. Schaible and Natasha Tsiouris, counsel Jonah A. Peppiatt and associate Jarret Erickson. The finance team includes partner Christian Fischer, counsel Bernard Tsepelman and associate Theodore N. Batis. The litigation team includes partner Frances E. Bivens. Partners Lucy W. Farr and Dominic Foulkes provided tax advice. Members of the Davis Polk team are based in the New York and London offices.

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