MRC Global Inc. announced on October 29, 2024, that it has secured a new $350 million Senior Secured Term Loan B, which matures in 2031. The proceeds from this new loan, combined with borrowings from the asset-based lending facility, were utilized to repurchase all 363,000 shares of its 6.50% Series A Convertible Perpetual Preferred Stock.
The preferred stock was repurchased for a total of $361 million, plus an additional $4 million in accrued dividends, as part of an agreement with Mario Investments LLC. This strategic move is expected to be accretive to both cash generation and earnings per share in 2025 and beyond, while also simplifying the company's capital structure and eliminating potential future equity dilution.
Furthermore, the previously announced amendment of the company’s asset-based lending facility, which aims to extend its maturity date to 2029, remains on track. This extension is expected to be finalized in November 2024, further solidifying MRC Global's financial foundation.
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