|Bid||2.1300 x 2900|
|Ask||2.1300 x 1100|
|Day's Range||1.9600 - 2.2000|
|52 Week Range||1.4400 - 18.9100|
|Beta (3Y Monthly)||4.57|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||9.74|
(Bloomberg) -- Some of McDermott International Inc.’s bondholders are hiring advisers and agreeing to restrict their trading so they can get access to confidential information and begin weighing options for the troubled U.S. engineering firm.A bondholder group controlling about 30% of McDermott’s $1.3 billion of bonds is organizing with law firm Paul Weiss Rifkind Wharton & Garrison LLP and Houlihan Lokey, an investment bank that specializes in restructurings, according a person with knowledge of the matter.Some members of the group are preparing to sign non-disclosure agreements that would give them access to confidential data in exchange for restricting trades in the company. That would help bondholders gauge what options are available to stabilize the business, said two people familiar with the discussions, who asked not to be identified discussing the private talks.The moves come two days after McDermott lost almost two-thirds of its stock market value and its bonds and loans plunged, amid struggles with $4 billion of debt it took on to finance an acquisition. After hours of speculation in the market, reports emerged that it had hired restructuring advisers.Advisers AddedThe Houston-based company confirmed it had hired Evercore to review unsolicited approaches about selling its Lummus Technology business. McDermott is also getting advice from AlixPartners and Kirkland & Ellis, people familiar with those hires said.Representatives for McDermott, Paul Weiss and Houlihan Lokey declined to comment, while a spokeswoman for Kirkland & Ellis didn’t immediately respond to a request for comment. The hiring of AlixPartners and Kirkland was previously reported by Dow Jones.Investors were unnerved because they’d been led to expect that the company would announce it had successfully completed a sale of certain businesses before the end of the third quarter. Instead, McDermott disclosed it hired advisers to study strategic alternatives, including a sale of its Lummus Technology business.To contact the reporters on this story: Allison McNeely in New York at firstname.lastname@example.org;Katherine Doherty in New York at email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, Shannon D. HarringtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
McDermott International (NYSE:MDR) news for Friday about the oil company considering a sale of its tech unit has MDR stock soaring.Source: curraheeshutter / Shutterstock.com The McDermott International news starts off with the company noting that it has received a unsolicited offers from a entities seeking to acquire all, or part of, Lummus Technology. The offers for the tech unit have a value above $2.50 billion.McDermott International says that it is considering the offers for Lummus Technology. It has brought in Evercore to serve as its lead advisor in connection to the opportunities present from a deal.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott's capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet," David Dickson, President and CEO of McDermott International, said in a statement. "While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value." * 7 Triple-'F' Rated Stocks to Leave on the Shelf McDermott International doesn't provide further details about the offers for Lummus Technology. That includes not mentioning names for any of the organizations seeking to acquire the tech unit, or if it will even move forward with the sale. Either way, the McDermott International news is helping out MDR stock today.MDR stock was up 15% as of Friday afternoon, but is down 78% since the start of the year.As of this writing, William White did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Triple-'F' Rated Stocks to Leave on the Shelf * 10 Excellent Stocks to Watch for 2020 and Beyond * 7 Consumer Stocks to Buy in an Uncertain Market The post McDermott International News: MDR Stock Skyrockets on Possible Sale of Tech Unit appeared first on InvestorPlace.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. McDermott International (NYSE: MDR ) shares ...
(Bloomberg) -- McDermott International Inc.’s shares and bonds jumped after the energy industry contractor said it’s exploring the sale of its Lummus Technology business, a move that may give the heavily indebted company some badly needed liquidity.Expressions of interest value the unit at more than $2.5 billion, and Evercore Inc. is advising on the potential divestment, the Houston-based company said Friday in a statement. McDermott said it’s also continuing efforts to sell the remaining part of its pipe fabrication business and its industrial storage tank business. The stock jumped as much as 73% while its notes more than doubled.It’s been a roller-coaster week for the company, with its shares plunging as much as 76% on Wednesday after the hiring of debt restructuring specialist AlixPartners was reported. Stock trading was halted for volatility at least five times while its bonds dropped below 20 cents on the dollar Thursday, as its chief executive officer abruptly canceled a public appearance for the second time in two weeks, before rebounding on Friday to about 38 cents.News of the potential sale of Lummus may give the company some breathing room as it looks for ways to slash a debt pile that’s grown to about $4.3 billion following its 2018 acquisition of Chicago Bridge & Iron Co. Conditions in the oil and natural gas industry aren’t helping: Crude prices have yet to fully recover since falling steeply in 2014, limiting spending by McDermott’s customers.What Bloomberg Intelligence Says“McDermott’s plan to sell its Technology unit could help solve its liquidity crisis, but only if it stems the tide of cost increases on ‘focus’ projects, which continue for another few quarters.”\-- Scott Levine, industrials analystClick here to read the researchThe company specializes in building and installing large, expensive items like oil platforms and natural gas plants. It’s currently constructing Sempra Energy’s giant Cameron liquefied natural gas complex in Louisiana. Lummus licenses technologies used in petrochemicals, refining and gas processing, and holds more than 3,100 patents.In a presentation last September, CEO David Dickson highlighted the technology, especially for Saudi Arabia’s state-owned oil company, which he described as McDermott’s largest customer for a number of years.The Lummus technology “is all about developing a more efficient technology in regard to crude oil or conversion of crude oil to chemicals,” he said. “We really see a fantastic opportunity in petrochemicals both here in the U.S., but we see a big opportunity and a big market coming in particular areas such as the Middle East.”The shares were 64% higher at $2.60 at 10:13 a.m. in New York. The company’s $1.3 billion of 10.625% unsecured bonds due 2024 rose about 21 cents to 38 cents on the dollar, according to Trace pricing.(Updates share and bond prices in last paragraph)\--With assistance from Tina Davis and Jeremy Hill.To contact the reporter on this story: Simon Casey in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Houston-based McDermott International Inc. (NYSE: MDR) could sell off its Lummus Technology business line after receiving unsolicited offers valuing it at more than $2.5 billion. The offers have prompted McDermott to explore "strategic alternatives to unlock the value of Lummus Technology while maintaining the strategic rationale of engineering, procurement and construction (EPC) pull-through," a Sept. 20 press release states. Strategic alternatives often include potential sales or other similar deals.
McDermott International, Inc. (NYSE: MDR) shares are trading sharply higher after the company announced it will explore strategic alternatives for Lummus Technology. McDermott recently received unsolicited offers to acquire Lummus with a valuation of over $2.5 billion. McDermott's Lummus Technology is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies.
Shares of McDermott International Inc. rocketed 82% in very active premarket trading Friday, after the provider of engineering and construction services to the energy industry said it was exploring the sale of its Lummus Technology business, which has been valued at more than $2.5 billion. Trading volume topped 8.9 million shares, making the stock the most actively traded ahead of the open. The company said it recently received unsolicited approaches to acquire all or part of Lummus, which is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies. "The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott's capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet," said Chief Executive David Dickson. McDermott said it has retained Evercore as lead advisor on strategic alternatives for McDermott. The stock, which has plummeted 73% this week through Thursday amid concerns the company may be mulling a bankruptcy, has shed 92% over the past 12 months through Thursday, while the SPDR Energy Select Sector ETF has lost 18.5% and the S&P 500 has gained 2.6%.
McDermott International Inc said on Friday it received takeover interests for all or part of its technology business that could value the unit at over $2.5 billion, sending its shares up about 66% in morning trade. The oilfield services company said it is now exploring strategic options for the unit, Lummus, which provides technology to petrochemicals, refining, and gas processing markets among others. Zephirin Group analyst Lenny Zephirin said the offer is "salivating" and, if accepted, should allow the company to reduce leverage by about $1.2 billion.
HOUSTON, Sept. 20, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) today announced it recently received unsolicited approaches to acquire all or part of Lummus Technology, McDermott's industry-leading technology business, with valuation exceeding $2.5 billion. Based on the receipt of these approaches, McDermott is exploring strategic alternatives to unlock the value of Lummus Technology while maintaining the strategic rationale of engineering, procurement and construction (EPC) pull-through. McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering.
McDermott International skyrockets after the engineering and construction company says it has received unsolicited interest to acquire all or part of Lummus Technology, which has been valued at $2.5 billion.
Moody's Investors Service ("Moody's") downgraded McDermott Technology (Americas), Inc.'s (McDermott) corporate family rating to B3 from B2, its probability of default rating to B3-PD from B2-PD, its senior secured credit facilities rating to B2 from B1, and its senior unsecured notes rating to Caa2 from Caa1, and placed all ratings under review for possible further downgrade. McDermott's speculative grade liquidity rating of SGL-3 is unchanged.
(Bloomberg) -- McDermott International Inc. Chief Executive Officer David Dickson abruptly canceled a public appearance for the second time in two weeks as the energy-engineering company grapples with dwindling investor confidence.Dickson was slated to deliver a presentation Thursday at the Gastech conference in Houston alongside peers from WorleyParsons Ltd. and TechnipFMC Plc. In his stead, McDermott COO Samik Mukherjee joined the panel, spokeswoman Gentry Brann said in an interview.The shuffle comes amid a meltdown in McDermott’s bonds and shares as the builder of oil platforms and natural gas plants struggles to cope with a $4.3 billion debt hangover from its 2018 purchase of Chicago Bridge & Iron Co. A person familiar with the matter said Wednesday that McDermott hired restructuring firm AlixPartners LLP for strategic and operational advice.McDermott’s stock has tumbled 72% since Monday’s close. The company’s $2.23 billion term loan due in 2025 fell for a second day to trade around 61 cents to 64 cents on the dollar, according to people familiar with the pricing. In lieu of the conference, Dickson opted to spend the day speaking with customers, Brann said.\--With assistance from Jeannine Amodeo and Allison McNeely.To contact the reporter on this story: David Wethe in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Joe Carroll, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of McDermott International Inc. tumbled 18% on heavy volume, to pace all NYSE decliners for a second-straight session, amid fears that the provider of engineering and construction services to the energy industry may be mulling a bankruptcy after reports that it hired AlixPartners LLP as a turnaround consultant. Trading volume ballooned to 65 million shares, compared with the full-day average of 9.8 million shares and enough to make the stock the most actively traded on major U.S. exchanges. The selloff follows a record 63% plunge for the stock on Wednesday after The Wall Street Journal reported the hiring of AlixPartners. The stock was trading at the lowest levels seen during regular-sessions hours since May 6, 2003. The extended declines comes after the company responded to the report by saying it "routinely" hires external advisors, and that it was taking positive and proactive measures to improve its balance sheet and capital structure. The stock has now plummeted 73% year to date, while the S&P 500 has gained 20%.
Trading of McDermott's stock was halted for three hours midday Sept. 18 after the price per share plunged nearly 50 percent on market chatter surrounding the hiring of a turnaround firm.
(Bloomberg) -- McDermott International Inc. hired restructuring firm AlixPartners for strategic and operational advice as the engineering company, which specializes in building energy infrastructure such as storage tanks and sub-sea pipelines, seeks to shore up its balance sheet, according to a person with knowledge of the matter.The Houston-based company’s stock plunged as much as 76% Wednesday -- trading was halted for volatility at least five times -- while its bonds dropped more than 30 cents to 37 cents on the dollar, making them Tuesday’s most actively traded debt in the U.S. high-yield market, according to Trace.The company said in a statement it “routinely hires external advisors to evaluate opportunities.” A company spokeswoman didn’t return messages seeking comment. The Wall Street Journal previously reported the hiring of AlixPartners.McDermott has struggled since the 2014-2016 oil-market collapse saw new orders dry up and a squeeze on cash flow. Its challenges grew with the 2018 acquisition of Chicago Bridge & Iron Co. and a debt burden that’s ballooned to about $4.3 billion, 14 times McDermott’s market value.Even after the worst of the crude-market collapse receded, the recovery has been too tepid to rejuvenate companies that design, build and provide crews for oil installations and LNG projects. McDermott’s malaise has been particularly acute because it absorbed a slate of Chicago Bridge projects that have been stung by costly labor shortages, construction delays and writedowns.The worst crude crash in a generation has taken a toll on the hired hands of the global energy industry. Weatherford International Plc was among the biggest to file for bankruptcy protection when it did so in July. Oilfield contractors in North America especially have been hurt by subdued spending by their exploration customers, who are under pressure from investors to return more profits.McDermott “has experienced substantial cost overages on LNG and power projects they inherited through that acquisition, notably the Cameron LNG project” sponsored by Sempra Energy and other partners, Scott Levine, a Bloomberg Intelligence analyst, said in an email. Sempra shares dropped as much as 1.9% Wednesday.The plunge in shares and bonds comes just weeks after Chief Executive Officer David Dickson warned investors that 2019 will be worse than expected because of delays at some of McDermott’s biggest projects. Earlier this month, the company canceled an appearance at a Barclays conference, citing the need to focus on asset sales and other unspecified priorities.McDermott’s $2.23 billion term loan due in 2025, its biggest piece of debt, also plunged, falling by about 17 cents on the dollar to trade at a bid of around 75 cents, a person familiar with the pricing said.The company has also brought Evercore Inc. on board to help evaluate strategic options, Debtwire reported earlier.(Updates prices for shares and bonds in second paragraph)\--With assistance from Joe Carroll, Shannon D. Harrington, James Crombie, Jeannine Amodeo, Michael Bellusci and Yueqi Yang.To contact the reporters on this story: Allison McNeely in New York at email@example.com;David Wethe in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com;Nikolaj Gammeltoft at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of McDermott International Inc. plunged 72% to a 16-year low in afternoon trading Wednesday, after The Wall Street Journal reported that the company has engaged the help of a turnaround consultant to help stem losses and improve cash flow. The stock was down a record 49% prior to a trading halt for news pending, then extended losses after the halt was lifted. The stock fell to the lowest prices seen since May 2003. The WSJ report, citing people familiar with the matter, said McDermott hired AlixPartners LLP as an advisor. McDermott responded by saying it "routinely hires external advisors" to evaluate opportunities. "The company is taking positive and proactive measures, as we have done in the past, intended to improve its capital structure and the long-term health of its balance sheet," McDermott said in a statement. Earlier this month, Bloomberg had reported that Mallinckrodt PLC had hired AlixPartners as the drugmaker explored a bankruptcy. In late July, McDermott had reported a surprise second-quarter loss and projected a surprise full-year loss. The stock has now lost 91% over the past 12 months, while the SPDR Energy Select Sector ETF has lost 17.7% and the S&P 500 has gained 2.7%.
HOUSTON, Sept. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) routinely hires external advisors to evaluate opportunities for the Company. The Company is taking positive and proactive measures, as we have done in the past, intended to improve its capital structure and the long-term health of its balance sheet. McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today.
The Houston engineering and construction firm has engaged Alix Partners, people familiar with the matter told the Wall Street Journal.
Shares of McDermott International Inc. plummeted 49% in morning trading Wednesday, prior to a trading halt for news pending as of 10:57 a.m. Eastern. Volume had swelled to 17.9 million shares, compared with the full-day average of 7.5 million shares, prior to the halt. The provider of construction, engineering and technology services to the energy industry was not immediately available for comment. The stock was halted once for volatility at 10:50 a.m. and again at 10:57 a.m., the same time as the halt for new. The stock was the leading loser listed on the NYSE, and was headed for the biggest one-day decline since the company went pubic in 1982 prior to the trading halt for news. On Tuesday, the company said its Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd. joint venture in China was awarded a contract between $50 million to $250 million to provide modules for the Arctic LNG 2 Project in Russia. The stock has now plunged 54.1% year to date prior to the halt, while the SPDR Energy Select Sector ETF has gained 7.9% and the S&P 500 has rallied 19.6%.
McDermott's (MDR) joint venture with China Shipbuidling Industry Corporation will execute fabrication along with partial procurement, construction and pre-commissioning scope.
HOUSTON, Sept. 17, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) today announced that its joint venture Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd (QMW) in Qingdao, China, has been awarded a large* contract to provide three complex modules for the Arctic LNG 2 Project in the Yamal-Nenets Autonomous Region in Russia.
NEW YORK , Sept. 6, 2019 /PRNewswire/ -- S&P Dow Jones Indices will make the following index adjustments to the S&P MidCap 400 and S&P SmallCap 600 to ensure each index more appropriately represents its ...