McJunkin Corp.'s term loan broke Tuesday and was wrapped around par 3/4-101 1/4 most of the day, a trader said. The credit consists of a $300 million asset-based revolver and a $575 million term loan.
On Jan. 26, Standard & Poor's affirmed its BB and 1 recovery rating on its $300 million ABL revolver. It also affirmed its B+ rating on the company's $575 million secured term loan, but lowered the recovery rating to 4 from 3 following the decision to increase the ABL because there is now only $200 million in residual collateral available to cover the term loan in the event of default, according to the ratings agency.
The financing, led by Goldman Sachs and Lehman Brothers, is being used by GS Capital Partners, along with about $241 million in equity, to fund the buyout of the company and repay existing debt. The exact transaction price could not be determined. Based in Charleston, W.Va., McJunkin is a supplier of industrial piping products and integrated services. Michael Wehrle, chairman and cfo, did not return a call.