MRC Global Enhances Financial Flexibility with New Loan Facility

MRC Global Expands Financial Resources with Amended Loan Facility

MRC Global Inc. has recently made significant strides in strengthening its financial stance by amending its asset-based revolving loan facility. The updated agreement now extends the loan maturity to November 2029, ensuring that MRC Global maintains robust financial support over the coming years.

Details of the Loan Facility

The revised asset-based loan facility has a committed borrowing capacity of $750 million. This financial flexibility is essential for MRC Global as it navigates through evolving market dynamics and aims to enhance its operational capabilities.

Competitive Terms of Financing

The updated terms of the loan remain largely consistent with the previous agreement, featuring a borrowing rate linked to Term SOFR. This includes a margin that varies between 1.25% and 1.75%, depending on the company's fixed charge coverage ratio, which illustrates MRC's commitment to maintaining competitive financing conditions.

CEO's Insight on the Transaction

Rob Saltiel, President and CEO of MRC Global, expressed confidence in the company’s financial support structures. He stated, "We are pleased to have successfully closed on our amended ABL credit facility with favorable terms and an extended maturity. This transaction, along with our new 7-year Term Loan B, reinforces our capital structure and reduces our reliance on immediate capital markets for credit support."

Impact on Corporate Strategy

This strategic move not only strengthens MRC Global’s financial backbone but also positions the company to navigate the challenges and opportunities within the diverse markets it serves. The recent financial maneuvers reflect MRC Global's proactive approach to capital management and resource allocation.

About MRC Global Inc.

MRC Global, headquartered in Houston, Texas, stands out as the premier global distributor of pipe, valves, fittings (PVF), and a range of other infrastructure products and services. Catering to a variety of end-markets, including gas utilities, industrial, and energy sectors, MRC Global draws on over a century of experience to deliver innovative supply chain solutions and technical expertise. The company operates a robust digital platform across a broad network of over 200 locations, featuring valve and engineering centers.

Commitment to Quality and Service

With a strong quality assurance program in place, MRC Global offers an extensive selection of over 300,000 SKUs sourced from more than 8,500 suppliers. Their comprehensive service approach aims to simplify supply chain processes for approximately 10,000 clients, ensuring that customers receive the best possible solutions tailored to their needs.

Contact Information

For more details about strategic initiatives at MRC Global, reach out to Monica Broughton, Vice President of Investor Relations and Treasury. She can be contacted at 832-308-2847 or via email at Monica.Broughton@mrcglobal.com.

Frequently Asked Questions

What is the purpose of the amended loan facility?

The amended loan facility aims to extend MRC Global's financial flexibility and stability, supporting its operations through 2029.

How much is the committed borrowing capacity?

The committed borrowing capacity of the amended facility is $750 million.

What are the borrowing rate terms?

The borrowing rate is based on Term SOFR with a margin of 1.25% to 1.75%, contingent on the company's financial metrics.

How does this impact MRC Global's capital structure?

This transaction enhances MRC Global's capital structure, reducing the need for reliance on near-term capital markets.

Who should I contact for more information?

For more information, you can contact Monica Broughton, VP of Investor Relations, directly.

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