Fairmount finalizes $700 million term loan at Libor plus 600 bps

By Sara Rosenberg

New York, Oct. 26 – Fairmount Santrol Inc. firmed pricing on its $700 million five-year covenant-light first-lien term loan (B3/B-) at Libor plus 600 basis points, the high end of revised talk of Libor plus 575 bps to 600 bps, and up from initial talk of Libor plus 475 bps, according to a market source.

Additionally, the original issue discount on the term loan was set at 98.5, the tight end of revised talk of 98 to 98.5, but wide of initial talk of 99.5, the source said.

The term loan still has a 1% Libor floor and soft call protection of 102 in year one and 101 in year two.

Earlier in syndication, the call protection was revised from a 101 soft call for one year and the maturity was shortened from seven years.

Barclays is the lead arranger on the deal.

Final commitments and credit agreement comments are due at noon ET on Friday, 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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