Smart Sand has refinanced its existing credit facility into a combination five-year equipment financing and a five-year senior secured asset-based lending credit facility.
The company entered into a five-year, $20 million ABL credit facility with Jefferies Finance. The facility provides for non-amortizing revolving loans with a borrowing base comprised of the company’s accounts receivable and inventory, subject to certain reserves. The ABL facility was unfunded at the time of issuance with $19.8 million available as the initial borrowing base.
The ABL credit facility provides the company with the right to request additional commitments in an aggregate principal amount of up to $20 million, subject to customary conditions.
“Securing this long-term financing is an important part of our long-term strategy. With this refinancing we are able to continue the buildout of our SmartSystems wellsite proppant storage solutions, pay down existing debt while maintaining financial flexibility to support our on-going operations, and continue operating as one of the lowest levered companies in the proppant supply and services industry,” said Charles Young, the company’s CEO._x000D_
The company also received proceeds of $23 million under the Oakdale equipment financing, which were primarily used to repay in full and terminate its existing credit facility, and the remainder will be used for general working capital purposes. The Oakdale equipment financing is comprised of a master lease agreement with Nexseer Capital and is secured by specific machinery, equipment and tools at the company’s Oakdale facility.
Smart Sand is a fully integrated frac sand supply and services company, offering complete mine to wellsite solutions to our customers.
