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McDermott International, Inc. Announces Pricing Of Tangible Equity Units

McDermott International, Inc. (NYSE:MDR) today announced the pricing of an underwritten public offering of 10,000,000 6.25% tangible equity units (the “Units”), each with a stated value of $25.00, which will result in net proceeds to McDermott of approximately $242 million. In addition, the underwriter has a 13-day option to purchase up to an additional 1,500,000 Units from McDermott. Settlement of the offering is subject to customary closing conditions and is expected to occur on April 7, 2014. Each Unit will consist of a prepaid stock purchase contract and an amortizing note. Unless earlier settled, each stock purchase contract will automatically settle on April 1, 2017 (subject to postponement in limited circumstances) for a number of shares of McDermott’s common stock that will equal at least 2.9030 and not more than 3.5562 shares (subject to adjustment in certain circumstances). The amortizing notes will pay proportionally equal cash quarterly installments of $0.3906 per note (except the first such installment, which will be $0.3646 per note), which will constitute a payment of interest and a partial repayment of principal, and which in the aggregate will be equivalent to a 6.25% cash payment per year with respect to each $25.00 stated amount of each Unit. The amortizing notes will have a final installment payment date of April 1, 2017 and will be unsecured senior obligations of McDermott. All of the securities to be offered will be issued under McDermott’s currently effective shelf registration statement. McDermott's common stock is listed on the New York Stock Exchange under the symbol “MDR.”

McDermott intends to use the net proceeds from the offering, together with proceeds expected to be received from other previously announced financing transactions relating to the refinancing of its outstanding credit agreement, for general corporate purposes, including the funding of working capital requirements and capital expenditures.

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