HOUSTON, Sept. 5, 2017 /PRNewswire/ -- MRC Global Inc.
(NYSE:MRC) announced today that it is launching an effort to
refinance in full the company's $414
million in outstanding principal amount of senior secured
term loans under its existing term loan B, scheduled to mature in
November 2019. As part of this effort, the company will seek
to enter into a new, seven-year senior secured $400 million term loan B credit
facility. In addition, the Company intends to amend its
existing asset based lending facility (ABL) to extend the maturity
to 2022 and size the new ABL facility at $800 million. The company expects to use
proceeds of such a new term loan facility, together with a draw
under the company's ABL facility, to repay in full all indebtedness
outstanding under the existing term loan facility.
Andrew Lane, MRC Global's
President and CEO, said, "We are launching this refinancing effort
to take advantage of favorable conditions in the debt markets,
extend the maturity of our long-term debt to 2024 and extend our
ABL facility for another 5 years."
The company expects that, consistent with the existing term loan
facility, the obligations under the new term loan facility would be
secured by a first priority lien on all of the company's assets and
substantially all of the assets of the guarantor domestic
subsidiaries, other than the assets securing the ABL facility
(which include the company's accounts receivable, inventory and
related assets), and by a second priority lien on this ABL
collateral.
There can be no assurance that the company will enter into a new
term loan or new ABL facility, or what the ultimate terms of such
new facilities will be. The company's ability to enter into
these new facilities and use the proceeds thereof depends on, among
other things, market conditions, reaching final agreement with
lenders and the approval of the company's board of directors.
About MRC Global Inc.
Headquartered in Houston, Texas,
MRC Global is the largest global distributor, based on sales, of
pipe, valves and fittings (PVF) and related products and services
to the energy industry and supplies these products and services
across each of the upstream, midstream and downstream sectors. More
information about MRC Global can be found on our website
www.mrcglobal.com.
Contact:
Monica Broughton
Investor Relations
MRC Global Inc.
Monica.Broughton@mrcglobal.com
832-308-2847
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SOURCE MRC Global Inc.