McDermott International (NYSE:MDR) Declares Complete Practice Of Underwriter’s Option Of Purchasing Additional Equity Units

by Dagmark Garcia | Thursday, Apr 3, 2014 | 722 views

Boston, MA, 04/03/2014  (usastockreports) – McDermott International (NYSE:MDR), world’s one of the leading providers of integrated EPCI (Engineering Procurement Construction Installation) made an announcement on April 2, 2014,  that the firm has started full exercise of the underwriter’s option to buy additional equity units. MDR declared that the public offering which was recently announced by the underwriter has been brought to exercise.

The public offering involves 6.25% of total tangible units, each equity unit having a value up to $25.00, with an option of purchasing additional 1.5 million equity units from MDR. This purchasing option would allow MDR to sell a huge number of equity units which would count up to 11.5 million Units and hence increase the firm’s net profit to about $279 million. The declared public offering would be closing on April 7, 2014.

The only book running manger of this public offering would be Goldman Sachs & Co. which a multinational investment and banking firm in the U.S.

The firm declared this release in accordance and agreement with Rule 134, Securities Act, 1993. The public offering for these securities would be made through a prospectus which would be a part of the registration statement of this offering. These registration statements would be given to the booking manager of the offering.

MDR’s outlook

McDermott International (NYSE:MDR) is intending to productively use its net profit which would be incurred from this public offering along with others profits which are expected to be incurred from other previous financial transactions related to the re-financing of the firm’s credit agreement, for corporate purposes and general needs like capital expenditures and fund for capital requirements.

The firm is expecting a net profit of $279 million by selling 1.5 million tangible Units. These profits will help the firm to meet its capital needs and would also help in its growth and expansion worldwide.

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