Fairmount Santrol Announces Proposed Offering of Common Stock
October 19 2016 - 4:36PM
Fairmount Santrol (NYSE:FMSA), a leading provider of
high-performance sand and sand-based products, today announced that
it has commenced an underwritten public offering of 28,000,000
shares of Fairmount Santrol common stock. The underwriter will be
granted a 30-day option to purchase up to an additional 4,200,000
shares of common stock.
Fairmount Santrol intends to use the net proceeds of the
offering for general corporate purposes, which may include, but are
not limited to, repayment, repurchase or refinancing of debt and
leases, working capital, capital expenditures, acquisitions
permitted under its credit agreement, investments in or loans to
subsidiaries and joint ventures and satisfaction of other
obligations.
Morgan Stanley & Co. LLC is acting as sole book-running
manager for the offering. This offering is being made by means of a
prospectus supplement and accompanying base prospectus, copies of
which may be obtained by sending a request to: Morgan Stanley &
Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd
floor, New York, NY 10014.
This offering is being made pursuant to an effective shelf
registration statement filed with the Securities and Exchange
Commission. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy the Company's common
stock or any other securities, and there shall not be any offer,
solicitation or sale of securities mentioned in this press release
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction.
About Fairmount Santrol
Fairmount Santrol is a leading 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.
The Company also provides high-quality products, strong technical
leadership and applications knowledge to end users in the foundry,
building products, water filtration, glass, and sports and
recreation markets. Its global logistics capabilities include a
wide-ranging network of distribution terminals and rail cars that
allow the Company to effectively serve customers wherever they
operate. As one of the nation’s longest continuously operating
mining organizations, Fairmount Santrol has developed a strong
commitment to all three pillars of sustainable development, People,
Planet and Prosperity. Correspondingly, the Company’s motto and
action orientation is: “Do Good. Do Well.”
Forward-Looking Statements
Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent the Company’s expectations or beliefs
concerning future events, and it is possible that the results
described in this press release will not be achieved. These
forward-looking statements are subject to risks, uncertainties and
other factors, many of which are outside of the Company’s control
that could cause actual results to differ materially from the
results discussed in the forward-looking statements. These factors
include: changes in prevailing economic conditions, including
continuing pressure on and fluctuations in demand for, and pricing
of, our products; loss of, or reduction in business from the
Company’s largest customers or their failure to pay the Company;
possible adverse effects of being leveraged, including interest
rate, event of default or refinancing risks, as well as potentially
limiting the Company’s ability to invest in certain market
opportunities; the level of cash flows generated to provide
adequate liquidity; our ability to successfully develop and market
new products, including Propel SSP™; our rights and ability to mine
our property and our renewal or receipt of the required permits and
approvals from government authorities and other third parties; our
ability to implement and realize efficiencies from capacity
expansion plans and cost reduction initiatives within our time and
budgetary parameters; increasing costs or a lack of dependability
or availability of transportation services or infrastructure and
geographic shifts in demand; changing legislative and regulatory
initiatives relating to our business, including environmental,
mining, health and safety, licensing, reclamation and other
regulation relating to hydraulic fracturing (and changes in their
enforcement and interpretation); silica-related health issues and
corresponding litigation; seasonal and severe weather conditions;
and other operating risks that are beyond our control.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in
Fairmount Santrol Holdings Inc.’s filings with the Securities and
Exchange Commission (“SEC”). The risk factors and other factors
noted in our filings with the SEC could cause our actual results to
differ materially from those contained in any forward-looking
statement.
Investor contact:
Sharon Van Zeeland
440-279-0204
Sharon.VanZeeland@fairmountsantrol.com
Media contact:
Kristin Lewis
440-279-0245
Kristin.Lewis@fairmountsantrol.com
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