HOUSTON, Sept. 25, 2017 /PRNewswire/ -- MRC Global
Inc. (NYSE:MRC) announced today that it has completed its
previously announced financings of a new $400 million
seven-year senior secured Term Loan B and an amendment and
extension of its global senior secured asset based lending (ABL)
facility, with a new size in the amount of $800 million. The Term Loan B matures in
September 2024, and the ABL facility
expires in September 2022. Under the
Term Loan B, the company may elect to pay interest either at a rate
based on LIBOR, subject to a floor of 1.00%, plus a 350 basis point
margin, or at an alternative base rate. Under the ABL facility, the
company may elect to pay interest on outstanding loans from time to
time at a rate based on LIBOR plus an applicable margin ranging
from 1.75% to 1.25% (based on availability under the ABL facility),
or at an alternative base rate. U.S. borrowings under the ABL
facility prior to December 1, 2017
will be at LIBOR plus a 175 basis point margin.
Andrew R. Lane, MRC Global's
president and chief executive officer stated, "We have successfully
extended the maturities of our debt facilities and at the same time
taken advantage of a favorable credit market environment to lower
our annual interest expense. These new arrangements provide us with
the flexibility to continue to execute our long-term strategy in an
improving energy market."
The proceeds from the financings were used to pay off the
company's prior term loan tranche, which had a remaining balance of
$414 million. In addition, the
company will use the ABL facility for working capital and general
corporate purposes. More details regarding these financings can be
found in a Current Report on Form 8-K that the company will file
with the U.S. Securities and Exchange Commission.
As previously announced, MRC Global expects to record a pre-tax
charge related to the financing of the Term Loan B of approximately
$4 million. In addition, the company expects to record an
additional pre-tax charge of $3
million related to the amendment and extension of the ABL
facility. These charges will be recorded in the quarter ending
September 30, 2017.
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 "expects" and similar expressions are intended to
identify forward-looking statements. Despite the company's
expectations of the estimated size of the pre-tax charges related
to the financings, the size of these charges are only the company's
current estimations. The actual amounts of these charges will
depend upon a final accounting of the fees and expenses associated
with extinguishment and refinancing of the prior term loan and ABL
facilities.
Contact:
Monica Broughton
Investor Relations
MRC Global Inc.
Monica.Broughton@mrcglobal.com
832-308-2847
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SOURCE MRC Global Inc.