Daily News: November 2, 2017

Barclays, PNC Capital Markets Lead Fairmount Santrol $825MM Refi


Fairmount Santrol, a provider of high-performance sand and sand-based product solutions, entered into a new term loan B credit facility to refinance its existing term loan B credit facilities and secured a new revolving credit facility resulting in extended maturities.

As part of the refinancing, the company used cash on hand to continue to reduce its overall debt. The new term loan B facility retains the minimal covenant features of the company’s previous loans.

As of September 30, 2017, the company’s outstanding term B-2 loans and extended term B-1 loans balance was $781.4 million, which is net of $1.3 million from the original issue discount. The company entered into an agreement for a new $700 million, five-year senior secured term loan B and a new $125 million, five-year ABL revolver to refinance the majority of its existing term B-2 loans and extended term B-1 loans. The remaining $82.7 million in term b-2 loans and extended term b-1 loans were paid off by using $32.7 million of cash on hand and $50 million that the company borrowed upon closing the new ABL revolver.

The ABL revolver replaces the company’s existing $100 million revolving credit facility and is expected to provide more liquidity for the company.

Barclays acted as the lead arranger, sole bookrunner and administrative agent on the term loan B refinancing transaction. PNC Capital Markets was the lead arranger, sole bookrunner and administrative agent for the ABL revolver.

Michael Biehl, executive vice president and CFO of Fairmount Santrol, said, “We are pleased to have completed this refinancing prior to the end of 2017, meeting our previously stated goal. This successful debt refinancing is the next phase in our measured approach to improve Fairmount Santrol’s capital structure and reduce the Company’s total debt levels.”