MRC Global Extends ABL Maturity to 2029

By Tamara Parker • Wednesday, November 13 10:22 • Permanent Link

MRC Global Inc. (NYSE: MRC) has recently announced the closing of its amended asset-based revolving loan facility (ABL), which has extended its maturity to November 2029. The amended ABL now has a committed borrowing capacity of $750 million, with terms that are substantially the same as the previous facility. The borrowing rate is based on Term SOFR plus a margin ranging from 1.25% to 1.75%, determined by the company’s fixed charge coverage ratio.

This move is part of MRC Global's efforts to strengthen its capital structure and reduce its dependence on near-term capital markets for credit support. The company's President and CEO, Rob Saltiel, expressed satisfaction with the successful closure of the amended ABL, emphasizing that it, along with a recently announced 7-year Term Loan B, has helped fund the repurchase of the company's convertible preferred stock.

MRC Global, headquartered in Houston, Texas, is a leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services to diversified end-markets. With over 100 years of experience, the company has provided customers with innovative supply chain solutions, technical product expertise, and a robust digital platform from a worldwide network of over 200 locations, including valve and engineering centers.

In addition to the ABL amendment, MRC Global recently announced a 7-year Term Loan B to fund the repurchase of its convertible preferred stock, indicating a strategic approach to capital structure improvement. The company continues to focus on providing quality assurance, offering over 300,000 SKUs from more than 8,500 suppliers, and simplifying the supply chain for approximately 10,000 customers.

MRC Global's commitment to enhancing its capital structure and providing innovative supply chain solutions demonstrates its dedication to sustaining and improving its financial position. As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $13.54. Check out the company's full 8-K submission here.

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