Vallourec gets €550 million multicurrency revolving facility

By Mary-Katherine Stinson

Lexington, Ky., April 16 – Vallourec SA entered into a new five-year €550 million multicurrency revolving facility agreement in connection with an $820 million offering of senior notes due 2032, according to a press release.

Additionally, some of the company’s subsidiaries entered into an amendment to their existing U.S. asset-based revolving credit agreement, which will provide for a $140 million increase in total commitments, raising the asset-based loan facility to a total committed amount of $350 million. The maturity date was extended to 2029.

The availability of the revolving agreement and amended asset-based facility is subject to the completion of the new senior note offering and some other customary conditions.

Proceeds from the new note offering, along with cash on hand, will be used to fund the redemption of €1,023,400,000 of Vallourec’s 8˝% senior notes due 2026 and to repay about €68 million outstanding under the company’s existing state-guaranteed loans plus accrued interest.

Vallourec is a Meudon, France-based manufacturer of tubes for the energy markets.

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