HOUSTON, Sept. 15, 2017 /PRNewswire/ -- MRC Global
Inc. (NYSE:MRC) announced today that its loan arrangers have
received preliminary commitments from interested lenders in respect
of a previously announced, new $400 million seven-year senior
secured Term Loan B, and the arrangers have allocated
participations to the lenders based on these commitments. The
company expects to use the proceeds of the Term Loan B to refinance
the company's existing term loan obligations.
Under the Term Loan B, the company may elect to pay interest at
either a rate based on LIBOR, subject to a floor of 1.00%, plus a
350 basis point margin, or at an alternative base rate.
The company expects that, consistent with its existing term loan
facility, the obligations under the Term Loan B will be secured by
a first priority lien on substantially all of the company's assets,
and substantially all of the assets of the company's domestic
guarantor subsidiaries, other than the assets securing the
company's asset-based lending (ABL) facility (which assets include
the company's accounts receivable, inventory and related assets)
and by a second priority lien on this ABL collateral.
MRC Global expects to record a pre-tax charge upon the
completion of the financing of the Term Loan B of approximately
$4 million related to the write-off of original issue discount
and debt issuance costs.
Although the arrangers of the Term Loan B have reported receipt
of preliminary commitments from interested lenders and allocation
of participations in the Term Loan B based on these commitments,
the closing and funding of the Term Loan B will be subject to our
fulfillment of various conditions, including entering into
definitive documentation with the lenders, delivery of customary
closing documents and legal opinions and delivery of collateral
satisfactory to the lenders.
As previously announced, in connection with the entry into the
term loan, the company also intends to amend its existing global
ABL facility.
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.
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 "will," "expects", "would" and similar expressions
are intended to identify forward-looking statements.
Despite the company's expectations of entering into a new
term loan, the terms and pricing of a term loan, the amendment of
its global ABL facility amendment, the terms of the amendment and
the use of proceeds to refinance its existing term loan are only
the company's expectations regarding these actions. Whether the
company is actually successful in obtaining such a term loan and
global ABL amendment on expected terms and conditions with expected
uses of proceeds is dependent on a number of factors, including
(among others) debt market conditions, reaching final agreement on
the definitive documentation with lenders and the company's
financial condition, results and future prospects, which, in turn
are dependent on factors, including (among others) those that
impact our business. These factors are more fully set out in
the Company's Annual Report on Form 10-K for the year ended
December 31, 2016 that the company
has filed with the U.S. Securities and Exchange Commission, which
can be viewed at 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.