Maverick Tube gets commitment for $325 million revolver

By Sara Rosenberg

New York, May 26 - Maverick Tube Corp. has gotten a commitment for a new $325 million senior secured revolving credit facility, which is expandable to up to $450 million under certain conditions, according to an 8-K filed with the Securities and Exchange Commission Thursday.

JPMorgan is the lead bank on the deal.

Proceeds will be used to help fund the $186 million purchase price for three companies - Tubos del Caribe SA, a Colombian manufacturer of oil country tubular goods and line pipe, Consorcio Metalurgico Nacional SA, a Colombian manufacturer of steel electrical conduit and other pipe and tube products, and Advance Corp., a Houston-based distributor of oil country tubular goods and electrical conduit.

Completion of the acquisition is expected to occur prior to June 30.

The new revolver will also be used to refinance existing bank borrowings and provide additional liquidity for future growth.

Terms of this new revolver are favorable compared to the company's current credit facility, a company news release previously stated.

Maverick Tube is a St. Louis-based manufacturer of tubular products used in the energy industry for drilling, production, well servicing and line pipe applications, as well as industrial tubing products used in various applications.

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