Fairmount ups $700 million term loan talk to Libor plus 575-600 bps

By Sara Rosenberg

New York, Oct. 24 – Fairmount Santrol Inc. increased price talk on its $700 million covenant-light first-lien term loan (B3/B-) to a range of Libor plus 575 basis points to 600 bps from Libor plus 475 bps, according to a market source.

Also, original issue discount talk on the term loan was changed to a range of 98 to 98.5 from 99.5, the soft call protection was sweetened to 102 in year one and 101 in year two from 101 for one year and the maturity was shortened to five years from seven years, the source said.

The term loan still has a 1% Libor floor.

Barclays is the lead arranger on the deal.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to refinance existing term loans.

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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