<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
McDERMOTT INTERNATIONAL, INC.
(Name of Issuer)
Common Stock, $1.00 Par Value
(Title of Class of Securities)
580037109
(CUSIP Number)
March 6, 1998
(Date of Event which Requires Filing
of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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- ---------------------------
CUSIP No. 580037109 13G
- ---------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Soros Fund Management LLC
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- -------------------- ------ ----------------------------------------------------
5 SOLE VOTING POWER
5,488,000
------ ----------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY
------ ----------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 5,488,000
WITH
------ ----------------------------------------------------
8 SHARED DISPOSITIVE POWER
-0-
- ---------- ---------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,488,000
- ---------- ---------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [X]
- ---------- ---------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.75%
- ---------- ---------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
OO, IA
- ---------- ---------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
2
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- ---------------------------
CUSIP No. 580037109 13G
- ---------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
George Soros (in the capacity described herein)
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- -------------------- ------ ----------------------------------------------------
5 SOLE VOTING POWER
-0-
------ ----------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,488,000
OWNED BY
------ ----------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON -0-
WITH
------ ----------------------------------------------------
8 SHARED DISPOSITIVE POWER
5,488,000
- ---------- ---------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,488,000
- ---------- ---------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES [X]
- ---------- ---------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.75%
- ---------- ---------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IA
- ---------- ---------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
3
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- ---------------------------
CUSIP No. 580037109 13G
- ---------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Stanley F. Druckenmiller (in the capacity described herein)
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- -------------------- ------ ----------------------------------------------------
5 SOLE VOTING POWER
874,200
------ ----------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,488,000
OWNED BY
------ ----------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 874,200
WITH
------ ----------------------------------------------------
8 SHARED DISPOSITIVE POWER
5,488,000
- ---------- ---------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,362,200
- ---------- ---------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [ ]
- ---------- ---------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11.30%
- ---------- ---------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IA
- ---------- ---------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
4
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- ---------------------------
CUSIP No. 580037109 13G
- ---------------------------
- ---------- ---------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Duquesne Capital Management, L.L.C.
- ---------- ---------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [X]
- ---------- ---------------------------------------------------------------------
3 SEC USE ONLY
- ---------- ---------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
PENNSYLVANIA
- -------------------- ------ ----------------------------------------------------
5 SOLE VOTING POWER
874,200
------ ----------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY
------ ----------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON 874,200
WITH
------ ----------------------------------------------------
8 SHARED DISPOSITIVE POWER
-0-
- ---------- ---------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
874,200
- ---------- ---------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [X]
- ---------- ---------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
1.55%
- ---------- ---------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
OO, IA
- ---------- ---------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
5
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Item 1(a) Name of Issuer:
--------------
McDermott International, Inc. (the "Issuer")
Item 1(b) Address of Issuer's Principal Executive
Offices:
---------------------------------------
1450 Poydras Street
New Orleans, Louisiana 70112-6050
Items 2(a) Name of Person Filing:
---------------------
This Statement is filed on behalf of the
following persons (collectively, the
"Reporting Persons"):
i) Soros Fund Management LLC, a Delaware
limited liability company ("SFM LLC");
ii) Mr. George Soros ("Mr. Soros");
iii) Mr. Stanley F. Druckenmiller ("Mr.
Druckenmiller"); and
iv) Duquesne Capital Management, L.L.C., a
Pennsylvania limited liability company
("Duquesne LLC").
This Statement relates to Shares (as defined
herein) held for the accounts of Quantum
Partners (as defined herein) and the
Duquesne LLC Clients (as defined herein).
SFM LLC, a Delaware limited liability
company, serves as principal investment
manager to Quantum Partners LDC, a Cayman
Islands exempted duration company ("Quantum
Partners"), and, as such, has been granted
investment discretion over portfolio
investments, including the Shares, held for
the account of Quantum Partners. Mr. Soros
is the Chairman of SFM LLC. Mr.
Druckenmiller is the Lead Portfolio Manager
and a Member of the Management Committee of
SFM LLC. Mr. Druckenmiller also owns a 75%
interest in, and is the sole managing member
of, Duquesne LLC, an investment advisory
firm that serves as a discretionary
investment advisor to a limited number of
institutional clients (the "Duquesne LLC
Clients").
6
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Item 2(b) Address of Principal Business Office:
-------------------------------------
The address of the principal business
office of each of SFM LLC, Mr. Soros and
Mr. Druckenmiller is 888 Seventh Avenue,
33rd Floor, New York, NY 10106.
The address of the principal business
office of Duquesne LLC is 2579
Washington Road, Suite 322, Pittsburgh,
Pennsylvania 15241-2591.
Item 2(c) Citizenship:
------------
i) SFM LLC is a Delaware limited liability
company;
ii) Mr. Soros is a United States citizen;
iii) Mr. Druckenmiller is a United States
citizen; and
iv) Duquesne LLC is a Pennsylvania limited
liability company.
Item 2(d) Title of Class of Securities:
----------------------------
Common Stock, par value $1.00 per share (the
"Shares")
Item 2(e) CUSIP Number:
------------
580037109
Item 3 Not Applicable
Item 4. Ownership:
---------
Item 4(a) Amount Beneficially Owned:
--------------------------
As of March 5, 1998, each of the Reporting
Persons may be deemed the beneficial owner of
the following number of Shares:
i) SFM LLC and Mr. Soros may be deemed to be
the beneficial owner of the 5,488,000 Shares
held for the account of Quantum Partners.
ii) Mr. Druckenmiller may be deemed the
beneficial owner of 6,362,200 Shares. This
number consists of (A) 5,488,000 Shares held
for the account of Quantum Partners and (B)
874,200 Shares held for the accounts of the
Duquense LLC Clients.
7
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iii) Duquesne LLC may be deemed the
beneficial owner of the 874,200 Shares held
for the accounts of the Duquesne LLC Clients.
Item 4(b) Percent of Class:
----------------
i) The number of Shares of which each of SFM
LLC and Mr. Soros may be deemed to be the
beneficial owner constitutes approximately
9.75% of the total number of Shares
outstanding.
ii) The number of Shares of which Mr.
Druckenmiller may be deemed to be the
beneficial owner constitutes approximately
11.30% of the total number of Shares
outstanding.
iii) The number of Shares of which Duquesne
LLC may be deemed to be the beneficial owner
constitutes approximately 1.55% the total
number of Shares outstanding.
Item 4(c) Number of shares as to which such person has:
--------------------------------------------
SFM LLC
-------
(i) Sole power to vote or to direct the
vote: 5,488,000
(ii) Shared power to vote or to direct
the vote: -0-
(iii) Sole power to dispose or to direct
the disposition of: 5,488,000
(iv) Shared power to dispose or to direct
the disposition of: -0-
Mr. Soros
---------
(i) Sole power to vote or to direct the
vote: -0-
(ii) Shared power to vote or to direct
the vote: 5,488,000
(iii) Sole power to dispose or to direct
the disposition of: -0-
(iv) Shared power to dispose or to direct
the disposition of: 5,488,000
8
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Mr. Druckenmiller
-----------------
(i) Sole power to vote or to direct the
vote: 874,200
(ii) Shared power to vote or to direct the
vote: 5,488,000
(iii) Sole power to dispose or to direct
the disposition of: 874,200
(iv) Shared power to dispose or to direct
the disposition of: 5,488,000
Duquesne LLC
------------
(i) Sole power to vote or to direct the
vote: 874,200
(ii) Shared power to vote or to direct
the vote: -0-
(iii) Sole power to dispose or to direct
the disposition of: 874,200
(iv) Shared power to dispose or to direct
the disposition of: -0-
Item 5 Ownership of Five Percent or Less of a Class:
--------------------------------------------
Not Applicable
Item 6 Ownership of More than Five Percent on Behalf
of Another Person:
---------------------------------------------
The shareholders of Quantum Partners,
including Quantum Fund N.V., a Netherlands
Antilles company, have the right to
participate in the receipt of dividends from,
or proceeds from the sale of, the Shares held
for the account of Quantum Partners in
accordance with their ownership interests in
Quantum Partners.
The Duquesne LLC Clients have the right to
participate in the receipt of dividends from,
or proceeds from the sale of, the Shares,
held for their accounts.
Each of SFM LLC and Mr. Soros expressly
disclaims beneficial ownership of any Shares
held for the accounts of the Duquesne LLC
Clients. Duquesne LLC expressly disclaims
beneficial ownership of any Shares held for
the account of Quantum Partners.
9
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Item 7 Identification and Classification of the
Subsidiary Which Acquired the Security Being
Reported on By the Parent Holding Company:
--------------------------------------------
Not Applicable
Item 8 Identification and Classification of Members
of the Group:
--------------------------------------------
Not Applicable
Item 9 Notice of Dissolution of Group:
------------------------------
Not Applicable
Item 10 Certification:
By signing below each signatory certifies that, to the best of his/its
knowledge and belief, the securities referred to above were not acquired and are
not held for the purpose of or with the effect of changing or influencing the
control of the Issuer of the securities and were not acquired and are not held
in connection with or as a participant in any transaction having that purpose or
effect.
10
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: March 6, 1998 SOROS FUND MANAGEMENT LLC
By: /s/Michael C. Neus
Michael C. Neus
Assistant General Counsel
Dated: March 6, 1998 GEORGE SOROS
By: /s/Michael C. Neus
Michael C. Neus
Attorney-in-Fact
Dated: March 6, 1998 STANLEY F. DRUCKENMILLER
By: /s/Michael C. Neus
Michael C. Neus
Attorney-in-Fact
Dated: March 6, 1998 DUQUESNE CAPITAL MANAGEMENT, L.L.C.
By: /s/Gerald Kerner
Gerald Kerner
Managing Director
11
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EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
A. Power of Attorney dated as of January 1, 1997
granted by Mr. George Soros in favor of Mr. Sean
Warren and Mr. Michael Neus.
B. Power of Attorney dated as of January 1, 1997
granted by Mr. Stanley F. Druckenmiller in favor
of Mr. Sean Warren and Mr. Michael Neus.
C. Joint Filing Agreement dated March 6, 1998 by
and among Soros Fund Management LLC, Mr. George Soros
and Mr. Stanley F. Druckenmiller and Duquesne Capital
Management,L.L.C.
<PAGE>
EXHIBIT A
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, GEORGE SOROS, hereby make, constitute
and appoint each of SEAN C. WARREN and MICHAEL C. NEUS, acting individually, as
my agent and attorney-in-fact for the purpose of executing in my name, (a) in my
personal capacity or (b) in my capacity as Chairman of, member of or in other
capacities with Soros Fund Management LLC, all documents, certificates,
instruments, statements, filings and agreements ("documents") to be filed with
or delivered to any foreign or domestic or governmental or regulatory body or
required or requested by any other person or entity pursuant to any legal or
regulatory requirement relating to the acquisition, ownership, management or
disposition of securities or other investments, and any other documents relating
or ancillary thereto, including but not limited to, all documents relating to
filings with the United States Securities and Exchange Commission (the "SEC")
pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934
(the "Act") and the rules and regulations promulgated thereunder, including: (1)
all documents relating to the beneficial ownership of securities required to be
filed with the Sec pursuant to Section 13(d) or Section 16(a) of the Act,
including, without limitation: (a) any acquisition statements on Schedule 13D or
Schedule 13G and any amendments thereto, (b) any joint filing agreements
pursuant to Rule 13d-1(f) and (c) any initial statements of, or statements of
changes in, beneficial ownership of securities on Form 3, Form 4 or Form 5 and
(2) any information statements on Form 13F required to be filed with the SEC
pursuant to Section 13(f) of the Act.
All past acts of the attorney-in-fact in furtherance of the foregoing are hereby
ratified and confirmed.
This power of attorney shall be valid from the date hereof until revoked by me.
IN WITNESS WHEREOF, I have executed this instrument as of the 1st day of
January, 1997.
/s/ George Soros
--------------------------------
GEORGE SOROS
<PAGE>
EXHIBIT B
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, STANLEY F. DRUCKENMILLER, hereby make,
constitute and appoint each of SEAN C. WARREN and MICHAEL C. NEUS, acting
individually, as my agent and attorney-in-fact for the purpose of executing in
my name, (a) in my personal capacity or (b) in my capacity as Lead Portfolio
Manager of, member of or in other capacities with Soros Fund Management LLC, all
documents, certificates, instruments, statements, filings and agreements
("documents") to be filed with or delivered to any foreign or domestic or
governmental or regulatory body or required or requested by any other person or
entity pursuant to any legal or regulatory requirement relating to the
acquisition, ownership, management or disposition of securities or other
investments, and any other documents relating or ancillary thereto, including
but not limited to, all documents relating to filings with the United States
Securities and Exchange Commission (the "SEC") pursuant to the Securities Act of
1933 or the Securities Exchange Act of 1934 (the "Act") and the rules and
regulations promulgated thereunder, including: (1) all documents relating to the
beneficial ownership of securities required to be filed with the Sec pursuant to
Section 13(d) or Section 16(a) of the Act, including, without limitation: (a)
any acquisition statements on Schedule 13D or Schedule 13G and any amendments
thereto, (b) any joint filing agreements pursuant to Rule 13d-1(f) and (c) any
initial statements of, or statements of changes in, beneficial ownership of
securities on Form 3, Form 4 or Form 5 and (2) any information statements on
Form 13F required to be filed with the SEC pursuant to Section 13(f) of the Act.
All past acts of the attorney-in-fact in furtherance of the foregoing are hereby
ratified and confirmed.
This power of attorney shall be valid from the date hereof until revoked by me.
IN WITNESS WHEREOF, I have executed this instrument as of the 1st day of
January, 1997.
/s/ Stanley F. Druckenmiller
---------------------------------------
STANLEY F. DRUCKENMILLER
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EXHIBIT C
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with
respect to the Common Stock of McDermott International, Inc., dated as of March
6, 1998 is, and any amendments thereto (including amendments on Schedule 13D)
signed by each of the undersigned shall be, filed on behalf of us pursuant to
and in accordance with the provisions of Rule 13d-1(f) under the Securities
Exchange Act of 1934.
Dated: March 6, 1998 SOROS FUND MANAGEMENT LLC
By: /s/ Michael C. Neus
Michael C. Neus
Assistant General Counsel
Dated: March 6, 1998 GEORGE SOROS
By: /s/ Michael C. Neus
Michael C. Neus
Attorney-in-Fact
Dated: March 6, 1998 STANLEY F. DRUCKENMILLER
By: /s/ Michael C. Neus
Michael C. Neus
Attorney-in-Fact
Dated: March 6, 1998 DUQUESNE CAPITAL MANAGEMENT, L.L.C.
By: /s/ Gerald Kerner
Gerald Kerner
Managing Director
