MRC Global closed a new $400 million seven-year senior secured term loan B and an amendment and extension of its global senior secured ABL facility, with a new size in the amount of $800 million. JPMorgan Chase was administrative agent and lead arranger for the term loan. Bank of America agented the ABL and Bank of America Merrill Lynch was lead arranger.

The term loan B matures in September 2024, and the ABL facility expires in September 2022. Under the term loan B, the company may elect to pay interest either at a rate based on LIBOR, subject to a floor of 1.00%, plus a 350 basis point margin, or at an alternative base rate.

Under the ABL facility, the company may elect to pay interest on outstanding loans from time to time at a rate based on LIBOR plus an applicable margin ranging from 1.75% to 1.25% (based on availability under the ABL facility), or at an alternative base rate. U.S. borrowings under the ABL facility prior to December 1, 2017 will be at LIBOR plus a 175 basis point margin.

Andrew R. Lane, MRC Global’s president and CEO, said, “We have successfully extended the maturities of our debt facilities and at the same time taken advantage of a favorable credit market environment to lower our annual interest expense. These new arrangements provide us with the flexibility to continue to execute our long-term strategy in an improving energy market.”

The proceeds from the financings were used to pay off the company’s prior term loan tranche, which had a remaining balance of $414 million. In addition, the company will use the ABL facility for working capital and general corporate purposes.

Headquartered in Houston, MRC Global distributes pipe, valves and fittings and related products and services to the energy industry and supplies these products and services across each of the upstream, midstream and downstream sectors.