Fairmount Santrol repays $213 million term loans due 2019 at discount

By Marisa Wong

Morgantown, W.Va., Nov. 29 – Fairmount Santrol Holdings Inc. said it repurchased $213 million of term loans outstanding under its existing credit agreement at a discount through a Dutch auction.

The company repurchased $37.9 million of extended term B-1 loans and $175.1 million of term B-2 loans.

The term loans were repurchased at an average of 96.3% of par, and the total cash paid to repurchase this debt was $205.1 million, plus accrued interest.

The related net gain on this debt repurchase will be recognized in the three months ending Dec. 31, according to a press release.

Following the transaction, the company has about $118 million of extended term B-1 loans and $721 million of term B-2 loans outstanding with both due September 2019.

“We are pleased with our ability to successfully execute another essential step in our phased approach to reducing our leverage and improving our capital structure,” executive vice president and chief financial officer Michael F. Biehl commented in the release.

“Our improved liquidity position enabled us to take advantage of market conditions and repurchase the debt below par, and the reduced principal amounts will save $9.6 million in interest payments annually.”

Based in Chesterland, Ohio, Fairmount Santrol is a 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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