S&P: Fairmount Santrol loan B-

S&P said it assigned its B- issue-level rating to Fairmount Santrol Inc.'s proposed $700 million seven-year senior secured term loan B. The recovery rating is 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

The company is also signing a new $125 million five-year asset-based lending revolving facility agreement (unrated).

The B- corporate credit rating is unchanged and the outlook is stable.

“We view the proposed transaction as credit neutral. The company will use the proceeds of the new term loan, alongside $50 million drawn down under the ABL facility, toward paying down its existing term loans,” the agency said in a news release.

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