Goldman Sachs Group’s Security Purchase Agreement with McDermott


Barclays and Credit Agricole Corporate Investment Bank acted as joint lead arrangers for the letter of credit facility with Moelis & Company LLC acting as financial advisor to McDermott. Vinson & Elkins advised certain investment funds managed by the Merchant Banking Division of The Goldman Sachs Group Inc. (GS) in the negotiation

McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) announced today the closing of the previously announced private placement of $300 million of redeemable preferred stock and warrants to purchase 6,773,094 shares of the Company’s common stock with investment funds managed by the Merchant Banking Division of The Goldman Sachs Group, Inc. (“Goldman Sachs MBD”) and the availability of the previously announced $230 million letter-of-credit facility. The net proceeds from the private placement are expected to be used for general corporate purposes, including working capital requirements, and the increase in letter-of-credit capacity is expected to enhance the Company’s readiness to book anticipated strong order intake.

Barclays acted as lead placement agent and Credit Agricole Securities (USA) Inc., ABN AMRO Securities (USA) LLC, RBC Capital Markets, LLC, and BMO Capital Markets Corp acted as placement agents. The Goldman Sachs Investment Banking Division acted as advisor to Goldman Sachs MBD in connection with the private placement.

Vinson & Elkins advised certain investment funds managed by the Merchant Banking Division of The Goldman Sachs Group Inc. with a team including partners Caroline Blitzer Phillips (Picture), Shamus Crosby and Ramey Layne with senior associate Crosby Scofield and associates Andrew Schulte and Luke Thomas. Also advising were partner Kaam Sahely, counsel Alistair Wishart, senior associate Alan Alexander and associates Vanessa McLellan and Steven Wilson; partner Brett Santoli; and partner David Peck and associate Lauren Meyers.

Involved fees earner: Caroline Blitzer Phillips – Vinson & Elkins LLP; Shamus Crosby – Vinson & Elkins LLP; Ramey Layne – Vinson & Elkins LLP; Andrew Schulte – Vinson & Elkins LLP; Luke Thomas – Vinson & Elkins LLP; Crosby Scofield – Vinson & Elkins LLP; Kaam Sahely – Vinson & Elkins LLP; Alistair Wishart – Vinson & Elkins LLP; Alan Alexander – Vinson & Elkins LLP; Vanessa McLellan – Vinson & Elkins LLP; Steven Wilson – Vinson & Elkins LLP; Brett Santoli – Vinson & Elkins LLP; David Peck – Vinson & Elkins LLP; Lauren Messonnier Meyers – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Goldman, Sachs & Co.;

Author: Ambrogio Visconti