Pipe, valve and fittings distributor MRC Global agreed to buy back all 363,000 shares of its Series A Convertible Perpetual Preferred Stock from Mario Investments, LLC.
MRC Global plans to repurchase its stock for around $361 million. The company anticipates financing the buyback through a $350 million seven-year Term Loan B, along with existing cash or funds from its asset-based lending facility.
“We believe that repurchasing the preferred stock will simplify our capital structure and eliminate shareholder concerns about potential equity dilution through conversion of the preferred stock into common shares,” MRC Global President & CEO Rob Saltiel said in an Oct. 15 news release. “We also expect that this repurchase will be accretive to both cash generation and earnings per share in 2025 and beyond based on current capital market conditions and anticipated financing terms”.
The company’s net debt leverage ratio is projected to be less than 2 times, based on the adjusted EBITDA from the previous months.
MRC Global announced its preliminary financial results for the third quarter of 2024, reporting:
- Total revenue of about $797 million
- Adjusted EBITDA of about $48 million
The company is No. 3 on MDM’s Top Distributor’s List for Industrial PVF and No. 15 for Industrial Supplies.
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