MRC Global launches $794 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 6 - MRC Global Inc. (McJunkin Red Man Corp.) held a call on Wednesday to launch a $794 million covenant-light term loan due November 2019 that is talked at Libor plus 400 basis points with a step-down to Libor plus 375 bps at total net leverage of 2.5 times with a 1% Libor floor and an original issue discount of 99 7/8, according to sources.

The term loan has 101 soft call protection for six months, sources said.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to reprice a roughly $640 million term loan from Libor plus 500 bps with a 1.25% Libor floor and repay revolver borrowings

Commitments are due on Nov. 13, sources added.

MRC is a Houston-based distributor of pipe, valve, fittings and related products and services to the energy industry.

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