BNP Paribas acted as administrative agent on a new $1.38 billion senior secured credit facility for U.S. Silica Holdings. The financing restated the company’s credit agreement with the bank and increased its senior debt to support U.S. Silica’s acquisition of EP Acquisition Parent (EPAP).
According to a related 8-K filing, the facility consists of a $1.28 billion term loan and a $100 million revolving credit facility that may also be used for swingline loans or letters of credit. U.S. Silica may also elect to increase the term loan.
The agreement was secured by substantially all of the assets and equity interests of U.S. Silica and U.S. Silica’s domestic subsidiaries. The term loan will mature on May 1, 2025 and the revolver on May 1, 2023. A portion of the term loan proceeds were used to finance the acquisition, pay fees and expenses associated with the transactions, and for general corporate purposes. The additional proceeds from the term loan and revolver will be used for general corporate purposes, such as acquisitions, investments, dividends and share repurchases.
Borrowings will bear interest at variable rates, at U.S. Silica’s election, at LIBOR or a base rate, in each case, plus an applicable margin. U.S. Silica will also pay a per annum facility fee and fees for letters of credit.
U.S. Silica Holdings produces commercial silica, a specialized mineral that is an input into a range of end markets. It operates in two segments: oil and gas proppants and industrial and specialty products.
