Fairmount shifts funds between term loans, firms at Libor plus 400 bps

By Sara Rosenberg

New York, Aug. 19 - Fairmount Minerals Ltd. upsized its first-lien term loan B-1 due March 15, 2017 to $325 million from $250 million and downsized its six-year first-lien term loan B-2 to $885 million from $960 million, according to a market source.

Also, pricing on the B-1 and B-2 loans, as well as on the $75 million five-year revolver, firmed at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, the source said.

In addition, the original issue discount on the term loan B-2 tightened to 99½ from 99 and the 101 soft call protection was shortened to six months from one year, the source continued.

The B-1 tranche still has no floor, an original issue discount of 99½ and 101 soft call protection for six months, the B-2 tranche still has a 1% Libor floor, and the revolver still has no Libor floor and an original issue discount of 991/2.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Barclays, KeyBanc Capital Markets LLC, PNC Capital Markets LLC and Wells Fargo Securities LLC are the bookrunners on the $1,285,000,000 senior secured credit facility (B1/BB-).

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.