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MRC Global Inc., a leading global distributor of pipe, valves and fittings (PVF) and other infrastructure products and services to diversified gas utility, energy and industrial end-markets, has announced it is launching an effort to amend, extend and refinance in full its $295 million in outstanding principal amount under its existing senior secured Term Loan B, scheduled to mature in September 2024.
The company will seek to enter into an amendment to and extension of the existing senior secured term loan B credit agreement, which is expected to, among other things, extend its current Term Loan B credit agreement for an additional five years and increase the outstanding amount under the facility from $295 million to $300 million. The company expects to use the proceeds to refinance the outstanding balance of $295 million under its existing senior secured Term Loan B with the remainder to be used for general corporate purposes.
In addition, the company is providing selected preliminary first-quarter 2023 financial results.
Preliminary First Quarter 2023 Financial Results
Revenue of approximately $885 million
Net income of approximately $33 million
Adjusted EBITDA of approximately $69 million, or 7.8% of sales
Gross Profit of approximately $179 million, or 20.2% of sales
Adjusted Gross Profit of approximately $188 million, or 21.2% of sales
Full year 2023 cash flow from operations continues to be expected to be at least $120 million
The company's strong performance in the first quarter provides increasing confidence in the outlook for the full year.
The company expects to release its full first quarter 2023 results on May 8, 2023, after the market close, as previously scheduled. The company will also hold a conference call to discuss its first quarter 2023 results at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on May 9, 2023, as previously scheduled.
Adjusted Gross Profit and Adjusted EBITDA are non-GAAP measures. Please refer to the reconciliations of Adjusted Gross Profit and Adjusted EBITDA to their nearest GAAP measures in this release.
There can be no assurance that the company will refinance its Term Loan B, or what the ultimate terms of the refinanced facility will be. The company's ability to enter into this refinanced Term Loan B facility and use the proceeds depends on, among other things, market conditions, reaching final agreement with lenders and the approval of the company's board of directors.