MRC Global Simplifies Capital Structure by Securing New $350 Million Term Loan B and Repurchasing Convertible Preferred Stock
HOUSTON, Oct. 29, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE:MRC), announced today that it has secured a new $350 million Senior Secured Term Loan "B" ("Term Loan") maturing in 2031.
The proceeds from this loan, and borrowings from the asset-based lending facility were used to repurchase all 363,000 shares of its 6.50% Series A Convertible Perpetual Preferred Stock for $361 million plus accrued dividends as part of an agreement with Mario Investments LLC, the holder of the preferred stock.
Rob Saltiel, MRC Global President & CEO stated, "We took advantage of favorable credit market conditions to issue a new term loan, allowing us to repurchase our preferred stock. We expect this repurchase to be accretive to both cash generation and earnings per share in 2025 and beyond. Additionally, these transactions simplify our capital structure and eliminate potential equity dilution through the conversion of the preferred shares into common stock."
The previously announced proposed amendment of the company's asset-based lending facility extending the maturity date to 2029, remains on track and is expected to be finalized in November 2024.
About MRC Global Inc.
Headquartered in Houston, Texas, MRC Global (NYSE:MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of 219 locations including valve and engineering centers. The company's unmatched quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers. Find out more at www.mrcglobal.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will," "expect," "expected," and similar expressions are intended to identify forward-looking statements.
Statements about the company's business, including the company's ...
