S&P raises MRC Global, rates loan B

S&P said it raised MRC Global (US) Inc. to B from B- and assigned B and 3 recovery ratings to the company’s planned $300 million term loan. The 3 recovery ratings indicate meaningful (50%-70%; rounded estimate: 55%) recovery in default.

MRC plans to use the loan to repay $295 million term loan.

“Our upgrade reflects the extended maturity profile of the company's capital structure through the proposed refinancing, and our forecast for MRC to maintain S&P Global Ratings-adjusted leverage below 4x over the next 12 to 24 months. The proposed refinancing eliminates near-term refinancing risk since the proposed term loan B will mature in 2028 compared to the existing term loan, which matures September 2024. Further, the transaction is leverage neutral given the company will use the majority of proceeds from the proposed term loan to repay existing debt balances,” S&P said in a press release.

The outlook is stable.

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