The consortium of financial investors led by Mason Capital Management includes IES Holdings, Nut Tree Capital Management, 683 Capital Management, First Pacific Advisors, and other investors.
Under the terms of the agreement announced in October, McDermott will receive $475 million of proceeds before taxes and transaction expenses.
Pursuant to the terms of McDermott’s credit agreement, proceeds from the sale will be used to repay CB&I’s existing term loan, cash collateralize certain McDermott letters of credit, and reduce an existing McDermott term loan.
Established in 1889 and headquartered in Texas, CB&I has more than 4,000 employees and 30 locations across North America, the Middle East, and Asia.
CB&I designs and builds storage facilities, tanks, and terminals, including LNG tanks and terminals.
CB&I’s projects include the Golden Pass LNG terminal, Marsa LNG, Plaquemines LNG, and others.
The company became part of McDermott in 2018 when the duo combined.
In 2023, McDermott completed actions to strengthen the storage business, including providing a dedicated capital structure.
“This transaction achieves a strategic goal set in motion last year and fully completes the separation of CB&I from McDermott,” said Michael McKelvy, president and CEO of McDermott.
“We will always have a shared history and know they will continue to lead the storage business under their new ownership,” McKelvy said.
We give you energy news and help invest in energy projects too, click here to learn more
