Fairmount launches $1.25 billion of term loans at Libor plus 350 bps

By Sara Rosenberg

New York, March 18 - Fairmount Minerals Ltd. launched on Tuesday its $1,248,000,000 of term loan debt with price talk of Libor plus 350 basis points, according to a market source.

The debt consists of a $324 million first-lien term loan B-1 due March 15, 2017 and a $924 million first-lien term loan B-2 due Sept. 5, 2019.

The B-1 loan has no floor, the B-2 loan has a 1% Libor floor, and both tranches are offered at par, the source said.

Included in the term loan B-2 is 101 soft call protection for six months.

Commitments are due at noon 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 deal.

Proceeds will be used to reprice the existing term loan B-1 from Libor plus 400 bps with no floor and the existing term loan B-2 from Libor plus 400 bps with a 1% Libor floor.

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

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