Unimin to launch $1.85 billion credit facilities on Tuesday morning

By Sara Rosenberg

New York, May 4 – Unimin Corp. is set to hold a bank meeting at 9:30 a.m. ET on Tuesday to launch $1.85 billion of credit facilities, according to a market source.

Barclays and BNP Paribas Securities Corp. are the lead arrangers on the deal. Barclays is the administrative agent.

The facilities consist of a $200 million five-year revolver and a $1.65 billion seven-year first-lien term loan, the source said.

Proceeds will be used help fund the company’s merger with Fairmount Santrol, to refinance some existing debt at both companies and for general corporate purposes.

Under the merger agreement, Fairmount shareholders, including equity award holders, will receive $170 million in cash, or about $0.74 per share based on Fairmount’s current diluted share count, and will own 35% of the combined company.

Closing is expected mid-year, subject to the approval of Fairmount shareholders, the receipt of regulatory approvals and the satisfaction of other customary conditions.

Unimin is a New Canaan, Conn.-based application-focused minerals company. Fairmount Santrol is a Chesterfield, Ohio-based provider of high-performance sand and sand-based product solutions used by oil and gas exploration and production companies to enhance the productivity of their wells.

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