S&P: Fairmount Minerals loans BB-

Standard & Poor's said it affirmed its BB- corporate credit rating on Fairmount Minerals Ltd.

The outlook is stable.

At the same time, S&P assigned BB- issue-level ratings to the company's proposed $1,285,000,000 senior secured credit facilities, consisting of a proposed $75 million revolving credit facility due 2018, a proposed $250 million term loan B-1 due 2017 and a proposed $960 million term loan B-2 due 2019. The recovery rating on these facilities is 3, which indicates the expectation for "meaningful" (50% to 70%) recovery in the event of default.

Fairmount intends to acquire the industrial sands business of fracking services provider FTS International LLC and will enter into an agreement to supply fracking sands to FTS. The terms of the transaction and supply agreement are not public.

In connection with this acquisition, Fairmount intends to obtain a $250 million term loan B-1 due 2017 and a $960 million term loan B-2 due 2019. Proceeds will be used to fund the acquisition, repay existing debt, and for general corporate purposes.

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