HOUSTON — MRC Global Inc. announced Tuesday that it has secured a new $350 million Senior Secured Term Loan “B” maturing in 2031.
The proceeds from the 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.
"We took advantage of favorable credit market conditions to issue a new term loan, allowing us to repurchase our preferred stock," said MRC President and CEO Rob Saltiel. "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.
