Fairmount Santrol amends, extends majority of tranche B-1 term loans

By Tali Rackner

Norfolk, Va., May 2 – Fairmount Santrol Inc. entered into a sixth amendment to its credit agreement to extend the maturity date of about 89% of outstanding tranche B-1 term loans to July 15, 2018 from March 15, 2017, according to an 8-K filed April 28 with the Securities and Exchange Commission.

Interest will be the same as the outstanding tranche B-2 term loans.

As of the effective date of the amendment, the maturity date of $139.1 million principal amount of outstanding tranche B-1 term loans was extended, leaving $16.9 million in principal amount of outstanding tranche B-1 term loans (not including the 2016 extended term loans) maturing on March 15, 2017.

In connection with the amendment, 50% of the aggregate principal amount of the 2016 extended terms loans, or $69.6 million, was prepaid and all accrued interest on the 2016 extended terms loans was paid. Following the payment, roughly $69.6 million principal amount of the 2016 extended terms loans remain outstanding and mature on July 15, 2018.

Before this amendment, the company would have been obligated to make an excess cash flow payment on April 29 of roughly $39.3 million.

Barclays is the administrative agent.

Based in Chesterland, Ohio, Fairmount Santrol is a provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells.

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