McDermott prices $550M Nordic bond in refinancing push
What's the deal? McDermott InternationalDealroom has a profile for this one. Try Dealroom → has priced $550 million in senior secured first lien bonds in the Nordic market, the company announced from Houston on July 1, 2026.
The bonds carry a 10.5% coupon and mature in July 2031. Net proceeds will sit in escrow until other refinancing conditions are met.
Once released, the money will cash-collateralise letter of credit facilities, refinance existing debt, and cover general corporate purposes.
DNB CarnegieDealroom has a profile for this one. Try Dealroom → acted as global coordinator and joint bookrunner, with Clarksons Securities as joint bookrunner. McDermott will apply to list the bonds on the Euronext Nordic ABM.
Why now? The bond is a core part of a wider refinancing plan the energy engineering firm expects to close in the third quarter of 2026.
That plan also includes a $500 million equity rights offering, fully backstopped by some of McDermott's largest shareholders. The subscription period runs until August 17, 2026.
Shareholders vote on the package at a virtual special general meeting on July 13, 2026.
What could go wrong? Disbursement hinges on completing every other element of the refinancing. If any piece falls through, the escrowed cash stays locked up.
The 10.5% coupon also signals the cost of capital McDermott faces, a steep price that will weigh on its balance sheet through 2031.
The signal: As a mature engineering and construction firm serving the energy sector, McDermott is turning to the Nordic bond market — an increasingly popular venue for high-yield issuers — to bolt on longer-dated debt. With corporate backers DNB Carnegie and Clarksons Securities steering the offering, the deal reflects how established players are combining bond and equity instruments to reset their capital structures.
Read more: PR Newswire
Image credit: McDermott International
