S&P rates U.S. Silica loan B+

Standard & Poor's said that it assigned a B+ issue-level rating and 3 recovery rating to U.S. Silica Co.'s proposed $260 million senior secured term loan due 2017. The 3 recovery rating indicates the expectation of meaningful (50%-70%) recovery in the event of a payment default.

Proceeds from the proposed term loan are expected to be used to repay outstanding debt and fund a dividend to shareholders.

S&P's affirmed the B+ corporate credit rating on U.S. Silica. The outlook is stable.

The affirmation reflects the view that the company's near-term operating performance will continue to benefit from increased natural gas shale drilling activity, the agency said. As a result, the company's credit metrics will remain at an acceptable level given its aggressive financial risk profile.

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