MRC GLOBAL INC. - MRC STOCK NEWS

MRC Global (NYSE: MRC) announced the sale of its Canada operations to Emco The strategic divestiture aims to focus on core geographies and product offerings with stronger growth and profit potential. The sale is expected to be accretive to the company's adjusted gross margins and adjusted EBITDA margins.

The transaction will result in a pre-tax, non-cash loss on discontinued operations of approximately US $25 million in Q4 2024. The deal is expected to close in H1 2025, subject to Canadian regulatory approval. MRC Global plans to use the proceeds for debt reduction. CIBC served as financial advisor, with Norton Rose Fulbright and McCarthy Tétrault LLP providing legal counsel.

MRC Global has announced the successful amendment of its asset-based revolving loan facility (ABL), extending its maturity to November 2029. The amended ABL maintains a $750 million committed borrowing capacity with borrowing rates of Term SOFR plus 1.25% to 1.75% margin, based on the company's fixed charge coverage ratio. This transaction, combined with their recently announced 7-year Term Loan B, aims to strengthen the company's capital structure and reduce dependency on near-term capital markets for credit support.

MRC Global (NYSE: MRC) has appointed Deborah G. (Debbie) Adams as its new Board Chair, succeeding Robert L. Wood who retired for personal reasons. Adams, who joined the board in 2017, has been serving as chair of the Compensation & Human Capital Committee since 2022. She previously held executive positions at Phillips 66 as senior VP of health, safety and environmental, projects and procurement (2014-2016), and at ConocoPhillips as division president of transportation (2008-2014). The company highlighted her extensive experience in the energy industry and her potential contribution to maximizing shareholder value.

MRC Global reported Q3 2024 results with net income of $23 million ($0.27 per diluted share), down from $29 million ($0.33 per diluted share) in Q3 2023. Sales decreased 10% year-over-year to $797 million. The company generated strong operating cash flow of $96 million in Q3, bringing 2024 total to $197 million. Gross profit was $160 million (20.1% of sales), compared to $183 million (20.6%) in Q3 2023. The company raised full-year operating cash flow guidance to $220 million or more. Notable achievements include a record low Net Working Capital at 14.3% of sales and a Net Debt leverage ratio of 0.1 times.

MRC Global has secured a new $350 million Senior Secured Term Loan B maturing in 2031. The company used the loan proceeds, along with borrowings from its asset-based lending facility, to repurchase all 363,000 shares of its 6.50% Series A Convertible Perpetual Preferred Stock for $361 million plus accrued dividends from Mario Investments The company expects this transaction to be accretive to both cash generation and earnings per share in 2025 and beyond, while simplifying its capital structure and eliminating potential equity dilution. MRC Global's asset-based lending facility amendment, extending maturity to 2029, is expected to be finalized in November 2024.

MRC Global Inc. (NYSE: MRC) announced that Moody's Ratings upgraded the company's corporate family rating to 'B1' from 'B2' with a stable outlook. Moody's also upgraded the rating of the anticipated Term Loan B to 'B2'. The upgrade was based on MRC Global's moderate leverage, ample interest coverage, modest capital spending requirements, and solid operating performance.

S&P Global Ratings affirmed MRC Global's issuer-credit rating of 'B' with a stable outlook, citing the company's ability to sustain supportive operating performance and generate positive free cash flow. S&P rated the anticipated new Term Loan with a 'B' rating.

Rob Saltiel, MRC Global's President and CEO, expressed satisfaction with the credit rating upgrade, stating it reflects the company's progress in strengthening its capital structure and increasing financial flexibility.

MRC Global Inc. (NYSE: MRC) has announced plans to strengthen its capital structure through several key actions:

• Repurchase of Preferred Stock: Agreed to buy back all 363,000 shares of its 6.50% Series A Convertible Perpetual Preferred Stock for approximately $361 million.
• Term Loan B Financing: Launching a $350 million Term Loan B with an expected seven-year term to fund the repurchase.
• ABL Facility Amendment: Pursuing an amendment to extend the term of its asset-based lending facility until 2029.

The company also provided preliminary Q3 2024 results, including revenue of approximately $797 million, Adjusted EBITDA of about $48 million (6.0% of sales), and cash flow from operations of approximately $95 million. Full Q3 2024 results will be released on November 5, 2024.

MRC Global Inc. (NYSE: MRC) has announced its schedule for the release of third quarter 2024 earnings and the subsequent conference call and webcast. The company will release its Q3 2024 results on November 5, 2024, after the market closes. A conference call and webcast will follow on Wednesday, November 6, 2024, at 10:00 a.m. Eastern / 9:00 a.m. Central. Interested parties can participate via phone by dialing 201-689-8261 or through the company's website. A replay of the call will be available until November 20, 2024, and an archive of the webcast will be accessible on the company's website for 90 days.

MRC Global Inc. (NYSE: MRC) announced its second quarter 2024 results, reporting net income of $24 million, or $0.28 per diluted share. This marks an improvement from $18 million, or $0.21 per diluted share, in Q2 2023. The company's sales reached $832 million, a 3% increase from Q1 2024. Notably, MRC Global achieved a record Adjusted Gross Profit margin of 22.1% and generated $63 million in operating cash flow for the quarter. The company's Net Debt leverage ratio reached a historic low of 0.4 times. Despite challenges in the US oilfield and project delays in the DIET sector, MRC Global demonstrated resilience with sequential growth in revenue, adjusted EBITDA, and cash flow from operations.