U.S. Silica Receives Ratings Upgrade from S&P
U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced that Standard &
Poor’s Rating Services has raised its corporate rating on the Company to
BB- from B+ with a stable outlook. At the same time, S&P raised the
issue-level rating on the Company’s $255 million term loan to BB from
BB-.
Commenting on its rationale for the ratings change, S&P noted that “the
upgrade reflects our view that frac sand and industrial sand supplier
U.S. Silica’s improved operating performance, cash flow generation and
credit measures are sustainable now and that its former financial
sponsor has loosened control over the company. Our view of the business
balances the company’s good market position in both its frac and
industrial business against its small overall size and our expectation
for ongoing volatility in frac sand markets over the next several years
as the market matures.”
Don Merril, Vice President and Chief Financial Officer for U.S. Silica
added that the ratings upgrade “is a testament to the success of our
business model and our ability to generate strong cash flows.
Ultimately, this provides us with increased financial flexibility to
continue to grow the company and return value to shareholders.”
About U.S. Silica
U.S. Silica Holdings, Inc., a Delaware corporation, is the second
largest domestic producer of commercial silica, a specialized mineral
that is a critical input into the oil and gas proppants end market. The
company also processes ground and unground silica sand for a variety of
industrial and specialty products end markets such as glass, fiberglass,
foundry molds, municipal filtration and recreational uses. During its
100-plus year history, U.S. Silica Holdings, Inc. has developed core
competencies in mining, processing, logistics and materials science that
enable it to produce and cost-effectively deliver over 250 products to
customers across these end markets. U.S. Silica Holdings, Inc. is
headquartered in Frederick, Maryland.
Cautionary Information Regarding Forward-Looking Statements
Any statements in this press release that are not entirely historical in
nature constitute forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Readers are cautioned that these statements involve risks and
uncertainties, are only predictions and may differ materially from
actual future events or results. For important information regarding
forward-looking statements, please read page 1 of the Company’s Annual
Report on Form 10-K for the year ended Dec. 31, 2012.
Copyright Business Wire 2013