HOUSTON, Oct. 24, 2012 /PRNewswire/ -- MRC Global Inc. (NYSE:MRC) announced today that its loan arrangers have received preliminary commitments from interested lenders and that they have allocated participations based on these commitments for the company to enter into a new $650 million seven-year senior secured Term Loan B. The company expects to use the proceeds of the new term loan, together with a draw under the company's global asset-based lending (ABL) facility, to redeem all of the $861 million in outstanding 9.50% Senior Secured Notes due 2016 of McJunkin Red Man Corporation, a wholly owned subsidiary of the company. New Term Loan B The company would have the option under the term loan to pay interest at a base rate, subject to a floor of 2.25%, plus an applicable margin, or at a rate based on LIBOR, subject to a floor of 1.25%, plus an applicable margin. The applicable margin for base rate loans at closing is expected to be 400 basis points and the applicable margin for LIBOR loans is expected to be 500 basis points. The margin is expected to step down by 25 basis points if the company's consolidated total leverage ratio (as defined in the term loan) is less than 2.50:1.00. At the closing of the term loan, the interest rate is expected to be equal to 6.25%, as compared to an interest rate of 9.50% on the notes. During the nine months ended September 30, 2012, the company purchased in the open market $188.7 million in aggregate principal amount of the notes for $205.0 million. These purchases were funded from borrowings under the company's global ABL facility. The company expects to reduce its interest expense by over $50 million per year as a result of these purchases and the redemption of the notes, assuming the company's current debt levels, the anticipated initial interest rate under the term loan of 6.25% and current interest rates under the company's global ABL facility. MRC Global expects to record a charge upon the completion of the redemption of the notes of approximately $93 million, including the write off of original issue discount and debt issuance costs on the redeemed notes and for the applicable redemption premium.