Fairmount Santrol pays down $86.4 million term loans due 2017, 2018

By Susanna Moon

Chicago, Nov. 17 – Fairmount Santrol Inc. has prepaid about $86.4 million of term loans under its credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

Fairmount prepaid $16.8 million of term B-1 loans due March 2017 and $69.6 million of 2016 extended term B-1 loans due July 2018, according to a company announcement.

The term loans were repaid at par plus accrued interest.

“This debt reduction is another positive step in our phased approach to improve our balance sheet and address our financial obligations,” Michael F. Biehl, the company’s executive vice president and chief financial officer, said in the release.

“By fully repaying these term loans now, we will reduce our cash interest expense by approximately $5.5 million over the next 20 months.”

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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