Daily News: April 30, 2014

Morgan Stanley, Amegy Bank Finance Hi-Crush Acquisition

Hi-Crush Partners announced the successful completion of its previously announced acquisition of certain equity interests in Hi-Crush Augusta, the entity that owns a raw frac sand processing facility located in Augusta, WI, for cash consideration of $224.25 million. At the closing of the acquisition, the Hi-Crush preferred equity interest in Augusta was converted into common equity interests in Augusta. The Hi-Crush now owns 98% of Augusta’s common equity interests.

“This is an exciting day for us,” said Robert E. Rasmus, co-chief executive officer of Hi-Crush. “By acquiring the Augusta facility we have doubled the Partnership’s production capacity to 3.2 million tons per year, and have established a baseline for future expansion. We remain focused and ready for the future, and for meeting the market’s increasing need for Hi-Crush sand.”

Hi-Crush also announced that it closed on a new $200 million senior secured term loan credit facility. The borrowings under the term loan facility were used to partially fund the Augusta acquisition and to pay related fees and expenses. According to a company 8-K, Morgan Stanley Senior Funding served as administrative and collateral agent for the term loan, with Barclays Bank serving as syndication agent.

Hi-Crush also closed on a new five-year $150 million revolving credit facility. The revolver, currently undrawn, will mature in 2019. The primary purpose of the revolver is to finance future expansion activities, as well as for general corporate purposes. The 8-K noted further that Amegy Bank served as administrative agent, issuing lender and swing line lender for the revolver.

“These new corporate facilities form an important piece of our debt capital structure. We have taken advantage of the currently strong debt markets to increase our bank commitments, further strengthen our sources of funding and extend the maturity of our debt,” said Laura Fulton, CFO of Hi-Crush. “Our balance sheet is well-financed and remains flexible for future growth.”

Hi-Crush is an integrated producer, transporter, marketer and distributor of monocrystalline sand.