U.S. engineering firm McDermott has entered into an agreement with lenders under which the company will have access to up to $1.7 billion of additional financing, including a letter of credit capacity.

McDermott said on Monday that the company would have immediate access to $650 million of financing comprised of $550 million under a term loan facility and $100 million under a letter of credit facility, before reduction for related transaction fees and expenses.

According to the company, it expects to utilize the amounts available under the agreement to finance working capital and support the issuance of required performance guarantees on new projects.

David Dickson, president and CEO of McDermott, said: “This new credit agreement is a continued signal from our lenders that they support McDermott, our underlying business, growth strategy, and ability to achieve a long-term balance sheet solution.

“The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards.”

McDermott added that it was still pursuing the previously announced strategic alternatives process for Lummus Technology and the sale process for the remaining portion of the pipe fabrication business. The company did decide to terminate its previously announced sale process for its industrial storage tank business.

McDermott also announced that it is withdrawing its previously stated guidance for full-year 2019.