MRC Global Inc. announced on November 12, 2024, the successful amendment of its asset-based revolving loan facility (ABL), extending its maturity to November 2029. The amended ABL maintains a committed borrowing capacity of $750 million, providing substantial liquidity for the company's operations.
The terms of the ABL facility remain substantially consistent with the previous arrangement, featuring a borrowing rate of Term SOFR plus a margin ranging from 1.25% to 1.75%. This margin is determined based on the company’s fixed charge coverage ratio, reflecting its credit profile.
Rob Saltiel, MRC Global’s President and CEO, stated that the successful closing of the amended ABL credit facility, along with the new 7-year Term Loan B, strengthens the company’s capital structure. This move de-risks MRC Global's dependence on near-term capital markets for credit support, enhancing its financial stability.
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