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McDermott secures US$560 million in new capital to fund future growth

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World Pipelines,

McDermott International, Ltd (McDermott or the Company) has announced that it has secured approximately US$560 million in new capital through a series of transactions expected to close by the end of the year. McDermott has secured commitments from certain existing lenders and shareholders (the Investors) for these transactions, as well as approval from a steering committee comprised of certain existing letter of credit and term loan lenders (the Steering Committee). The transactions are designed to further strengthen the Company's balance sheet, increase liquidity and fund future growth opportunities.

"The support of the Investors and the Steering Committee reflects their confidence in our long-term business strategy and competitive position," said David Dickson, President and Chief Executive Officer of McDermott. "Following on the heels of a successful restructuring earlier this year, this additional capital will further solidify our liquidity position, enabling us to continue to deliver superior project execution for our customers and consistently pursue new growth opportunities as demand for our expertise and capabilities increases."

McDermott has received a commitment from the Investors with respect to a new letter of credit facility that will replace its existing cash secured letter of credit facility, permitting the release of cash collateral of approximately US$390 million. Additionally, McDermott will raise US$170 million in gross proceeds from the issuance of common shares to certain of its existing shareholders that has been backstopped by the Investors. The transactions are expected to close by year end.

Kirkland & Ellis LLP is serving as legal counsel to McDermott, AP Services, LLC, an affiliate of AlixPartners, is serving as operational advisor and Centerview Partners is serving as the Company's financial advisor.

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