HOUSTON, Nov. 19, 2013 /PRNewswire/ -- MRC Global
Inc. (NYSE: MRC) reported today that it has completed a repricing
of its senior secured Term Loan B while increasing the facility by
$150 million. The current applicable
annual interest rate was reduced by 100 basis points to LIBOR + 400
basis points (previously LIBOR + 500 basis points). At the
same time, the LIBOR floor on the facility was reduced from 1.25%
to 1.00%. As with the original facility, the applicable margin will
step down by 25 basis points if the company's consolidated total
leverage ratio (as defined in the term loan) is less than
2.50:1.00. The annual pre-tax interest savings at
current LIBOR levels, net of the facility expansion and partial
repayment of the Global ABL facility, is expected to be
approximately $4 million.
"We have taken advantage of our strong credit profile and an
attractive interest rate environment to increase the size of our
Term Loan and lower our interest rate. The facility expansion
proceeds have been used to pay down borrowings under our Global ABL
Facility, providing us with additional liquidity to execute on our
strategic objective to make acquisitions that expand our presence
in the energy infrastructure sector outside of the U.S." commented
MRC Global Chairman, President and CEO Andrew Lane.
The borrower under the upsized $793.5
million facility remains McJunkin Red Man Corporation, a
wholly owned subsidiary of the company.
MRC Global expects to record a pre-tax charge of approximately
$5 million in the fourth quarter of
2013 related to fees and the write-off of deferred financing costs
as a result of this transaction.
About MRC Global Inc.
Headquartered in Houston, Texas, MRC Global, a Fortune 500
company, is the largest global distributor of pipe, valves, and
fittings (PVF) and related products and services to the energy
industry, based on sales, and supplies these products and services
across each of the upstream, midstream and downstream sectors. More
information about MRC Global can be found
at www.mrcglobal.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act. Words such as "expects," and similar expressions are
intended to identify forward-looking statements.
The company's expectations regarding the interest savings from
the transactions described in this news release are only the
company's expectations regarding these savings. Whether the company
is actually successful in obtaining these savings is dependent on a
number of factors, including (among others) the company's debt
levels, the interest rate from time to time under the term loan and
the interest rates and amounts outstanding under the company's
global ABL facility.
Contacts:
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James E. Braun,
Executive Vice President and Chief Financial Officer
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Monica Schafer, Vice
President Investor Relations
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MRC Global
Inc.
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MRC Global
Inc.
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Jim.Braun@mrcglobal.com
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Monica.Schafer@mrcglobal.com
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832-308-2845
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832-308-2847
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SOURCE MRC Global Inc.