Smart Sand, Inc. Announces Long-Term Debt Refinancing Under Combination Equipment Financing and Credit Facility
December 16 2019 - 4:05PM
Smart Sand, Inc. (NASDAQ: SND) (the “Company”) announced today that
it has refinanced its existing Credit Facility into a combination
5-year equipment financing (“Oakdale Equipment Financing”) and a
5-year senior secured asset-based lending credit facility (“ABL
Credit Facility”).
The Company received proceeds of $23.0 million
under the Oakdale Equipment Financing, which were primarily used to
repay in full and terminate its existing Credit Facility, and the
remainder will be used for general working capital purposes. The
Oakdale Equipment Financing is comprised of a Master Lease
Agreement with Nexseer Capital and is secured by specific
machinery, equipment and tools at the Company’s Oakdale
facility.
The Company also entered into a 5-year, $20.0
million ABL Credit Facility with Jefferies Finance. The ABL
Facility provides for non-amortizing revolving loans with a
borrowing base comprised of the Company’s accounts receivable and
inventory, subject to certain reserves. The ABL Facility was
unfunded at the time of issuance with $19.8 million available as
the initial borrowing base. The ABL Credit Facility provides the
Company with the right to request additional commitments in an
aggregate principal amount of up to $20.0 million, subject to
customary conditions.
Charles Young, the Company’s Chief Executive
Officer, stated, “Securing this long-term financing is an important
part of our long-term strategy. With this refinancing we are able
to continue the buildout of our SmartSystems wellsite proppant
storage solutions, pay down existing debt while maintaining
financial flexibility to support our on-going operations, and
continue operating as one of the lowest levered companies in the
proppant supply and services industry.”
About Smart Sand:
Smart Sand is a fully integrated frac sand
supply and services company, offering complete mine to wellsite
solutions to our customers. We produce low-cost, high quality
Northern White frac sand and offer proppant logistics solutions to
our customers through our in-basin transloading terminal and our
SmartSystemsTM wellsite proppant storage capabilities. We provide
our products and services primarily to oil and natural gas
exploration and production companies and oilfield service
companies. We own and operate a frac sand mine and related
processing facility near Oakdale, Wisconsin, at which we have
approximately 317 million tons of proven recoverable sand reserves
and approximately 5.5 million tons of annual nameplate processing
capacity. For more information, please visit www.smartsand.com.
Contact:
Josh JaynePhone: (281) 231-2660Email:
jjayne@smartsand.com
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
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