MRC Global Secures $350 Million Term Loan B and Repurchases Series A Preferred Stock

MRC Global Inc. (NYSE: MRC) announced on October 29, 2024, that the company has entered into a Term Loan Credit Agreement to secure a new $350 million Term Loan B facility. This agreement was made among MRC Global (US) Inc., the Borrower, the Company, certain subsidiaries as guarantors, Term Lenders, and JPMorgan Chase Bank, N.A., as the administrative agent and collateral agent for the Term Lenders. The Term Loan carries an original principal amount of $350 million, payable in equal quarterly installments with a final balance due in October 2031, issued at an original discount of 99.5%. The interest rate for the Term Loan is based on Term SOFR or a base rate, with associated margins depending on various criteria such as credit ratings.

Moreover, the Term Loan allows for incremental increases in facility size based on certain financial metrics, and it is secured by the assets of MRC Global Inc. and certain subsidiaries. The company is obligated to make repayments using proceeds from asset sales and certain insurance payouts, with additional annual payments based on excess cash flow. The Term Loan includes restrictive covenants but does not have financial maintenance requirements.

In a related move, the ABL Amendment was also announced on October 29, 2024. This amendment, made to the Fourth Amended and Restated Loan, Security and Guarantee Agreement, permits the entry into the Term Loan Agreement and includes an Intercreditor Agreement among the parties involved. These agreements aim to simplify the company’s capital structure.

The company also disclosed the termination of the Shareholders’ Agreement with Mario Investments, LLC, following the repurchase of all outstanding Series A Preferred Stock for $361 million plus accrued dividends. Additionally, Henry Cornell, a member of the Board of Directors, announced his retirement effective at the 2025 Annual Meeting.

Furthermore, MRC Global filed a Certificate of Retirement to retire the Series A Preferred Stock officially. A press release on these transactions was issued on October 29, 2024.

For detailed information on the agreements, amendments, and announcements, the complete 8-K filing is accessible on the Securities and Exchange Commission’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MRC Global’s 8K filing here.

MRC Global Company Profile

MRC Global Inc, through its subsidiaries, distributes pipes, valves, fittings, and other infrastructure products and services in the United States, Canada, and internationally. It offers ball, butterfly, gate, globe, check, diaphragm, needle, and plug valves; other products, such as lined corrosion resistant piping systems, control valves, valve automation, and top work components; and valve modification services, including valve control extensions, welding, hydrotesting, painting, coating, x-raying, and actuation assembly.