Daily News: July 1, 2013

U.S. Silica Seeks to Refinance Existing ABL Facility

U.S. Silica Holdings announced that it launched an initiative, subject to market and other conditions, to refinance its current senior debt by entering into a new $425 million senior secured credit facility, consisting of a $375 million term loan and a $50 million revolving credit facility.

U.S. Silica currently has a $255 million senior secured term loan and a $50 million asset-based revolving credit facility. The company said in a filing that it intended to enhance its financial flexibility by converting the revolving credit facility from an ABL facility to a cash-flow facility and extending the term loan maturity date to May 2020 and the revolver maturity date to July 2018. The company said it expects the refinancing to close in the third quarter of 2013.

“We believe the current credit market and low interest environment provide us with an opportunity to further enhance our financial flexibility and lower our cost of capital,” said Don Merril, U.S. Silica vice president and CFO. “This proposed transaction would complement our long-term strategy with respect to growth opportunities and shareholder-enhancing initiatives,” he added.

Frederick, MD-based U.S. Silica Holdings is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market.