Davis Polk advised Goldman Sachs Lending Partners LLC as lead arranger and Bank of America, N.A. as administrative agent in connection with the redemption of McJunkin Red Man Corporation’s (MRMC) 9.5% senior secured notes due 2016 (the “Notes”) with a new $650 million senior secured term loan credit facility. The new credit facility is secured by a security interest in substantially all the assets of MRMC, MRC Global, Inc. (MRC Global), the parent of MRMC, and MRC Global’s material domestic subsidiaries on a first-lien or, in the case of certain assets also securing MRC Global’s asset-based revolving facility, a second-lien basis. The Notes will be redeemed with the proceeds of term loans under the new facility and drawings under MRMC’s revolving facility. U.S. Bank National Association is acting as collateral trustee under the new term loan facility.

Houston, Texas-based MRC Global is one of the largest global industrial distributors of pipe, valves and fittings and related products and services to the energy industry based on sales, and holds the leading position in its industry across each of the upstream (exploration, production and extraction of underground oil and natural gas), midstream (gathering and transmission of oil and natural gas, natural gas utilities and the storage and distribution of oil and natural gas) and downstream (petrochemical processing, crude oil refining and general industrials) sectors. Through its North American and international segments, MRC Global serves more than 12,000 active customers through over 400 service locations throughout North America, Europe, Asia and Australia.

The Davis Polk credit team included partner James A. Florack, associates Vivian Y. Wong and Jonathan B. Brown and law clerks Faizan A. Tukdi and Gregory A. Goldman. The tax team included partners Rachel D. Kleinberg and Michael Farber and law clerk Isaac MacDonald. The Davis Polk real estate team included counsel James P. McIntyre and associates Lucie E. Shin and Benjamin J. Bibler. Counsel Jeanine P. McGuinness provided OFAC/FCPA advice. Counsel Erin K. Cho and associate Veronica M. Wissel provided ERISA advice. Counsel Betty M. Huber and associate Amy E. Turner advised on environmental matters. Partner Frank J. Azzopardi and associate Bruce Rose-Innes provided intellectual property advice. Mariee Pilkington, Richard A. Harrison, Rana S. Ramjas and Verna Y. Gao were the legal assistants on the transaction. Members of the Davis Polk team are based in the New York, Menlo Park and Washington DC offices.



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