MRC Global Inc. Announces Intention To Refinance Secured Notes

As part of this effort, the company will seek to enter into a senior secured $750 million seven-year term loan B credit facility. The company expects to use proceeds of such a new term loan, together with a draw under the company's global asset based lending (ABL) facility, to redeem all of the company's outstanding 9.5% Senior Secured Notes due 2016.

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Houston, TX -- MRC Global Inc. announced today that it is launching an effort to refinance the company's $861 million in outstanding 9.5% Senior Secured Notes due 2016.  As part of this effort, the company will seek to enter into a senior secured $750 million seven-year term loan B credit facility.  The company expects to use proceeds of such a new term loan, together with a draw under the company's global asset based lending (ABL) facility, to redeem all of the company's outstanding 9.5% Senior Secured Notes due 2016.

Andrew Lane, MRC Global's Chairman, President and CEO, said, "We are launching this refinancing effort to extend the maturity of our long-term debt and significantly reduce our interest expense by taking advantage of historically low interest rates in the debt markets. This can provide us a base for our capital structure for years to come."

The company expects that the term loan would be secured by a first lien on all of the company's assets and the assets of all of the company's domestic subsidiaries, other than the assets securing the ABL facility (which include the company's accounts receivable, inventory and related assets) and by a second lien on this ABL collateral.

There can be no assurance that the company will enter into a term loan, what the ultimate terms of a term loan will be or what the ultimate use of proceeds that the term loan will provide.  The company's ability to enter into a term loan and use the proceeds depends on, among other things, market conditions, reaching final agreement with lenders and the approval of the company's board of directors.

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