U.S. Silica Announces Closing of $425 Million Senior Secured Credit Facility
U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced that it has
successfully completed the syndication of a new $425 million senior
secured credit facility to amend its existing senior secured credit
facility. BNP Paribas acted as lead arranger on the new facility.
The senior secured facilities consist of a $375 million, seven-year term
loan and a five-year $50 million revolving credit facility. Pricing on
the new term loan was set at LIBOR plus 300 basis points. The term loan
has a LIBOR floor of 100 basis points. The new interest rate on the
revolver is LIBOR plus 250 basis points.
“We’re very pleased with the results of the financing we completed
today. Having the additional cash on our balance sheet gives us, among
other things, increased flexibility to take advantage of strategic
opportunities in the marketplace,” said Don Merril, vice president and
chief financial officer. He added that the new senior secured facility
also provides the Company with favorable pricing and more flexible terms.
Proceeds from the new senior secured facility will be used to pay the
outstanding balance on the Company’s existing term loan, due in June,
2017, to pay fees and expenses, for excess cash, which can be used for
acquisitions, investments, dividends, and share buybacks and for general
corporate purposes.
About U.S. Silica
U.S. Silica Holdings, Inc., a member of the Russell 2000, 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
Certain statements in this press release are “forward-looking
statements” made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and speak only as of this date.
Forward-looking statements made include any statement that does not
directly relate to any historical or current fact and may include, but
are not limited to, statements regarding U.S. Silica’s financing plans.
Forward-looking statements are based on our current expectations and
assumptions, which may not prove to be accurate. These statements are
not guarantees and are subject to risks, uncertainties and changes in
circumstances that are difficult to predict. Many factors, such as
credit market uncertainty, could cause actual results to differ
materially and adversely from these forward-looking statements.
Information concerning these factors can be found in U.S. Silica’s
filings with the Securities and Exchange Commission. We undertake no
obligation to publicly update or revise any forward-looking statement as
a result of new information, future events or otherwise, except as
otherwise required by law.
Copyright Business Wire 2013