U.S. Silica Holdings, an industrial minerals company and last-mile logistics provider to the oil and gas industry, completed the repricing of its seven-year, $950 million senior secured term loan B due March 23, 2030. The repricing closed at the tight end of guidance at 99.75 and reduces the interest rate margin applicable to the term loan by 75 basis points from 4.75% with a floor of 50 basis points to 4% with a floor of 50 basis points for term SOFR term loans. In addition, the repricing eliminated the 10-basis-point term SOFR adjustment for term loans and reduced the soft call from 12 months to six months.
In conjunction with the repricing transaction, the company completed a voluntary term loan principal repayment of $25 million. The debt was extinguished at par using cash on hand. Over the last seven quarters, U.S. Silica has repurchased a total of $359 million in debt, lowering its debt service costs.
“We are pleased with the strong market demand for our term loan B,” Bryan Shinn, CEO of U.S. Silica, said. “U.S. Silica’s continued robust performance and strategic efforts to reduce debt, strengthen our balance sheet and improve our leverage profile are significant, and we welcome the recognition and support from the markets.”
BNP Paribas Securities is acting as administrative agent for the term loan. BNP Paribas Securities and MUFG Bank acted as joint lead arrangers and BNP Paribas Securities acted as the sole book runner.
