Fairmount Santrol Prices Public Offering of Common Stock
October 19 2016 - 9:54PM
Fairmount Santrol (NYSE:FMSA), a leading provider of
high-performance sand and sand-based products, today announced the
pricing of its underwritten public offering of 30,250,000 shares of
Fairmount Santrol common stock, upsized from 28,000,000 shares of
common stock, for total gross proceeds of approximately $285.9
million before deducting underwriting commissions and estimated
offering expenses. The underwriter will be granted a 30-day option
to purchase up to an additional 4,537,500 shares of common stock.
The underwriter may offer the shares from time to time in one or
more transactions on the New York Stock Exchange, in the
over-the-counter market, through negotiated transactions or
otherwise at market prices prevailing at the time of sale, at
prices related to prevailing market prices or at negotiated prices.
The offering is expected to close on October 25, 2016, subject to
customary closing conditions.
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
FMSA HOLDINGS INC (NYSE:FMSA)
Historical Stock Chart
From Mar 2024 to Apr 2024
FMSA HOLDINGS INC (NYSE:FMSA)
Historical Stock Chart
From Apr 2023 to Apr 2024