MRC Global eyes new $400 million term loan B and resized ABL facility

By Wendy Van Sickle

Columbus, Ohio, Sept. 5 – MRC Global Inc. plans to refinance its $414 million of senior secured term loans under its existing term loan B, scheduled to mature in November 2019, with a new seven-year senior secured $400 million term loan B credit facility, according to a press release.

MRC also plans to amend its existing asset-based lending facility to extend the maturity to 2022 and resize the ABL facility to $800 million.

The company would use proceeds of the new term loan facility and a draw under its ABL facility to repay all debt outstanding under the existing term loan facility.

“We are launching this refinancing effort to take advantage of favorable conditions in the debt markets, extend the maturity of our long-term debt to 2024 and extend our ABL facility for another five years,” Andrew Lane, MRC Global’s president and chief executive officer, said in the release.

The company expects that, consistent with the existing term loan facility, the obligations under the new term loan facility would be secured by a first-priority lien on all of its assets and substantially all of the assets of the guarantor domestic subsidiaries, other than the assets securing the ABL facility, and by a second priority lien on this ABL collateral.

The company said its ability to enter into these new facilities depends on, among other things, market conditions, reaching final agreement with lenders and the approval of the company’s board of directors.

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

© 2015 Prospect News.
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