Fairmount cuts spread on $550 million term B to Libor plus 450 bps

By Sara Rosenberg

New York, Aug. 3 - Fairmount Minerals Ltd. reduced pricing on its $550 million term loan B to Libor plus 450 basis points from initial talk of Libor plus 475 bps to 500 bps, according to a market source.

Also, the term loan B now has a step-down to Libor plus 425 bps when leverage is less than 2.75 times and after receipt of June 30, 2011 financials.

In addition, the original issue discount on the term loan B firmed at 981/2, the tight end of the previous 98 to 98½ guidance, the source said.

And, 101 soft call protection for one year was added to the B loan, the source continued.

Pricing on the company's $75 million revolver and $150 million term loan A was left unchanged at Libor plus 450 bps. These tranches have the same step-down to Libor plus 425 bps as the term loan B.

As before, the revolver and the term loan A are being offered at a discount of 981/2.

The Libor floor, which applies to the term loan A and the term loan B, was left unchanged as well at 1.75%.

Recommitments were due at 5 p.m. ET on Tuesday and allocations are hoped to go out either on Wednesday or Thursday.

Barclays, KeyBank, Bank of America and PNC are the lead banks on the $775 million senior secured credit facility (B1/BB), with Barclays the left lead.

Proceeds will be used to help fund the acquisition of the company by American Securities.

Fairmount Minerals is a Chardon, Ohio-based producer of industrial sand.

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