McJunkin Red Man Pays Off Debt
McJunkin Red Man Corp. (MRC), the largest global distributor of pipes, valves and fittings to the energy industry, recently paid off its $1 billion aggregate principal amount of 9.50% Senior Secured Notes due 2016.
The company received net proceeds of approximately $957.8 million. Net proceeds from the sale of the Notes (which were sold in a private offering), together with available cash on hand, were used to repay approximately $977 million of its debt.
The Notes are guaranteed by its parent company, McJunkin Red Man Holding Corp. and by all of MRC’s domestic subsidiaries, which are secured by a senior lien on substantially all of MRC’s assets and a junior lien on the assets which secure MRC’s revolving credit facility.
In other news, President and CEO Andew Lane was promoted to the added role of chairman of the board of directors of MR MHC. Chairman Craig Ketchum would serve as co‐chairman of the board of PVF Holdings LLC, MRC’s indirect parent company, together with H.B. Wehrle III.
Source: McJunkin Red Man