Fairmount Santrol talks $700 million term loan at Libor plus 475 bps

New York, Oct. 12 – Fairmount Santrol, Inc. launched a $700 million seven-year first-lien term loan (B3/B-) at a bank meeting on Thursday, according to a market source.

The covenant-light loan is talked at Libor plus 475 basis points with an original issue discount of 99.5 and a Libor floor of 1%.

There is 101 soft call protection for 12 months.

Barclays is the lead arranger.

Commitments are due on Oct. 24.

Proceeds will be used to refinance existing term loans.

On Tuesday, Moody’s Investors Service upgraded the company’s secured loan rating to B3 from Caa1.

Fairmount Santrol is a Chesterfield, Ohio, 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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