Fairmount Minerals sets talk on $1.29 billion facility with launch

By Sara Rosenberg

New York, Aug. 5 - Fairmount Minerals Ltd. came out with price talk on its $1,285,000,000 senior secured credit facility (B1) in connection with its bank meeting on Monday, according to a market source.

The $75 million five-year revolver is talked at Libor plus 400 basis points to 425 bps with no Libor floor and an original issue discount of 991/2, the $250 million first-lien term loan B-1 due March 15, 2017 is talked at Libor plus 400 bps to 425 bps with no floor and a discount of 991/2, and the $960 million six-year first-lien term loan B-2 is talked at Libor plus 400 bps to 425 bps with a 1% Libor floor and a discount of 99, the source said.

The term B-1 has 101 soft call protection for six months and the term B-2 has 101 soft call protection for one year.

Commitments are due on Aug. 16, the source added.

Barclays, KeyBanc Capital Markets LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of nearly all of FTS International's sand mining operations, resin-coating plants and distribution terminals and to refinance an existing senior secured credit facility.

Closing on the acquisition is expected by the end of the third quarter.

Senior secured leverage is 3.5 times and total leverage is 3.6 times.

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

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