S&P might lift Fairmount Santrol

S&P said it placed the B- corporate credit rating on Fairmount Santrol Inc. and the B- issue-level rating on the company's $700 million senior secured term loan on CreditWatch with positive implications.

The CreditWatch placement follows the announcement that Fairmount Santrol plans to merge with Unimin, the agency said.

“Fairmount Santrol's existing debt will be refinanced upon the close of the transaction, and we believe the new company will have a better credit profile than the stand-alone business of Fairmount Santrol,” S&P said in a news release.

The agency said it will resolve the CreditWatch as key transaction milestones are achieved, including approval by Fairmount Santrol's shareholders and regulatory approvals.

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