McJunkin Red Man completes $1.25 billion ABL credit facility

By Sara Rosenberg

New York, March 28 - McJunkin Red Man Corp. closed on a new $1.25 billion five-year ABL revolving credit facility, according to an S-1/A filed with the Securities and Exchange Commission on Wednesday.

Bank of America Merrill Lynch, Barclays Bank plc and Wells Fargo Capital Finance LLC acted as the joint lead arrangers and bookrunners on the deal that was completed on March 27.

Of the total revolver amount, $1.025 billion is a U.S. tranche, $145 million is a Canadian tranche, $12 million is a U.K. tranche, $52 million is an Australian tranche, $9 million is a Dutch tranche and $7 million is a Belgian tranche.

Pricing on the revolver is Libor/BA/Australian Bank Bill Rate plus 175 basis points.

On and after Sept. 1, the spread will be subject to a 25 bps step-up or step-down based on a consolidated fixed-charge coverage ratio as of the end of the fiscal quarter that most recently ended.

The unused fee on the revolver is 37.5 bps, dropping to 25 bps if usage exceeds 50%.

Covenants include a fixed-charge coverage ratio of at least 1.0 to 1.0 when excess availability is less than or equal to the greater of 10% of the total commitments and $95 million.

There is a $300 million accordion feature.

Proceeds were used to refinance existing debt.

Based in Tulsa, Okla., and Charleston, W. Va., McJunkin Red Man is a distributor of industrial pipe, valves and fittings and related products and services to the energy industry.

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