- Proceeds to be used to pay down existing debt
- Investment strengthens the balance sheet and provides additional financial flexibility to pursue attractive growth opportunities, including acquisitions
- Company reiterates fiscal 2015 cash from operations guidance
HOUSTON, May 19, 2015 /PRNewswire/ -- MRC Global Inc. (NYSE: MRC), the largest global distributor, based on sales, of pipe, valves and fittings (PVF) and related products and services to the energy industry, announced today that it has entered into an agreement to issue $363 million of 6.50% Series A Convertible Perpetual Preferred Stock to an affiliate of Cornell Capital LLC. The Company expects to use the proceeds to pay down its term loan and asset based lending facility.
"This transaction strengthens our capital structure and enhances our financial flexibility to execute on our growth strategy. We are excited about the opportunities this creates, as we now have greater ability to pursue additional means to create shareholder value, both from further investment in our existing business and strategic acquisitions," said Andrew Lane, MRC Global's Chairman, President and Chief Executive Officer.
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