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McDermott gets access to financing, reaches forbearance agreement

|About: McDermott International, Inc. (MDR)|By:, SA News Editor

McDermott (MDR +8.5%) says it has been granted access to $350M in financing and reached a forbearance agreement with some of its creditors.

MDR says the second tranche of the $1.7B superpriority senior secured credit facility announced on Oct. 21, which provides the company with a $250M term loan facility and a $100M letter of credit facility, should allow it to continue discussions regarding a long-term balance sheet solution.

Under terms of the forbearance agreement, holders of more than 35% of MDR's 10.625% senior notes due 2024 agree not to exercise their rights to the interest payment that was due on Nov. 1, 2019, and extends the agreement through Jan. 15, 2020.

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