McJunkin Red Man $450 million holdco term loan expected to launch Tuesday

By Sara Rosenberg

New York, May 9 - McJunkin Red Man Corp. is anticipated to hold a conference call on Tuesday to launch its proposed $450 million holdco term loan (B3/B-), according to market sources.

Goldman Sachs and Lehman are the lead banks on the deal, with Goldman the left lead.

The term loan is talked at Libor plus 325 basis points with an original issue discount that is still to be determined, sources said.

In addition, the company is also planning on getting a $50 million upsizing to its ABL revolver (Baa3/BB) that would bring the total revolver size to $700 million.

Proceeds from the term loan, along with a $25 million revolver draw, will be used to fund a $475 million dividend to Goldman Sachs Partners.

The deal is expected to close in the second quarter.

McJunkin Red Man is a Charleston, W.Va., distributor of pipe, valves and fittings.

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