(Bloomberg) -- McDermott International Inc.’s $1.7 billion super-senior credit facility could give an indication of terms if the struggling engineering and construction firm were to convert the debt into a bankruptcy loan.The facility consists of a $1.3 billion term loan and $400 million in letters of credit. It contains highly restrictive covenants that could provide a template for the kind of terms they would receive if they were to convert their debt into a debtor-in-possession loan in bankruptcy, Valerie Potenza, a high-yield analyst at Xtract Research, said in an interview.“It looks like a DIP, talks like a DIP, but it’s not a DIP,” she said.A representative for McDermott didn’t immediately respond to a request for comment.McDermott skipped a Nov. 1 interest payment on its bonds, triggering a 30-day grace period to make the payment or file for Chapter 11. It also warned in regulatory documents of the risk of bankruptcy.The company...
Will we or won't we have a recession? That's the question that is troubling some investors. When recession fears hit, many investors retreat to the relative safety of dividend stocks. These stocks offer the benefit of modest capital growth and regular dividend payments.For income investors, this can be a timely source of cash for regular expenses. For investors who don't need the income, many dividends can be reinvested to provide the benefit of compounding.But not all dividend stocks are the same. One mistake that some investors make is to chase a high yield. But that company that is paying a 5% dividend (or higher) today may not be able to sustain a dividend at that level.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe two questions investors need to ask regarding the safety of their dividend are: How likely is the company to sustain the dividend? And are they likely...
