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Emerge Energy refinancing includes four-year $75 million revolver
By Wendy Van Sickle
Columbus, Ohio, Jan. 5 – Emerge Energy Services LP entered into a four-year $75 million second amended and restated asset-based revolving credit and security agreement with PNC Bank, NA as administrative agent on Friday, according to a press release.
Subsidiaries Emerge Energy Services Operating LLC and Superior Silica Sands LLC are the borrowers.
The revolver replaces Emerge’s $170 million senior secured revolver entered on June 27, 2014.
There is a $20 million sublimit for letters of credit.
The revolver matures on Jan. 5, 2022.
Proceeds will be available to refinance existing debt and for general business purposes.
The agreement contains a maximum total leverage ratio, a minimum fixed-charge coverage ratio and minimum liquidity requirement.
Emerge also entered into on Friday a new $215 million second-lien note purchase agreement, with a portion of its proceeds slated to refinance in full its existing second-lien term loan and to fully pay off the obligations under the existing revolver, as well as to finance certain capital expenditures and for general corporate purposes.
Ted W. Beneski, chairman of the board of directors of the general partner of Emerge Energy, said in the release that the refinancing transactions as well as the private placement of approximately $6 million of common units provide the capital and flexibility needed to complete Emerge’s previously announced San Antonio expansion plans. The initial portion of the new plant is expected to be operational in May
Southlake, Texas-based Emerge Energy Services is a limited partnership formed in 2012 by management and affiliates of Insight Equity Management Co. LLC to own, operate, acquire and develop a portfolio of energy service assets.
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