Hi-Crush Partners LP Announces Successful Refinancing Transactions and Unit Repurchase Program Update
December 26 2017 - 6:00AM
Hi-Crush Partners LP (NYSE:HCLP), or Hi-Crush, today announced that
it entered into a new $200 million Senior Secured Term Loan Credit
Agreement ("Term Loan"), and a new five year Revolving Credit
Agreement, as well as completed $20 million of unit repurchases and
received necessary approvals to execute the remaining $80 million
of authorized unit repurchases.
The new $200 million Term Loan replaces the
Partnership’s previous $200 million Term Loan Credit Facility,
extending maturity to December 2024 from April 2021 previously.
Borrowings under the new Term Loan will bear interest at a rate
equal to, at the Partnership’s option, either (1) a base rate plus
an applicable margin of 2.75% per annum or (2) a Eurodollar rate
plus an applicable margin of 3.75% per annum, subject to a LIBOR
floor of 1.00%. The new Term Loan was rated B3 by Moody's Investor
Service (“Moody’s”) and B- by Standard and Poor's Ratings Agency
(“S&P”) . Both base rate loans and Eurodollar loans are subject
to a 0.25% rate increase during any period of time in which the
Partnership does not have a public corporate family rating of B2 or
better from Moody’s. Hi-Crush’s corporate ratings are B3 by Moody’s
and B- by S&P.
The new five-year $125 million Revolving Credit
Agreement replaces the company’s previous $75 million revolving
credit facility, extending the maturity to December 2022 from
December 2019 previously. There were no borrowings under the
Partnership’s prior revolving credit facility at the time of
closing, and the Partnership has no indebtedness under its new
Revolving Credit Agreement.
"We are very pleased to complete these
refinancing transactions on favorable terms, while extending our
maturity profile and enhancing our financial flexibility," said
Laura C. Fulton, Chief Financial Officer of Hi-Crush. "We remain
committed to maintaining a conservative balance sheet position, and
the ongoing support of our lending group provides the platform
necessary to continue investing in our business, while maximizing
value to unitholders in 2018 and beyond.”
Separately, Hi-Crush announced that it has
repurchased 2,030,163 common units in the fourth quarter of 2017,
representing approximately $20 million of unit repurchases since
announcing its unit buyback program of up to $100 million in
October 2017. This represents the maximum amount of unit
repurchases allowed for under the Company’s previous Term Loan
Credit Facility and revolving credit facility. The Partnership’s
new Term Loan and Revolving Credit Agreement permit unlimited
repurchases of common units, therefore allowing for execution up to
the remaining $80 million authorized. The repurchase program does
not obligate the Partnership to repurchase any specific dollar
amount or number of units, and may be suspended, modified or
discontinued by the Board of Directors at any time, in its sole
discretion and without notice.
"We remain fully committed to the unit buyback
program, as evidenced by our decisive execution thus far, and
expect to create further value for our unitholders through
additional unit repurchases,” said Robert E. Rasmus, Chief
Executive Officer of Hi-Crush. “We are focused on growing our
business and continue to benefit from significant growth in market
demand for frac sand, along with an expansion of the services we
provide to our customers. The improved pathway that these
refinancing transactions provide helps to ensure that Hi-Crush
remains a growth leader in the industry.”
About Hi-Crush
Hi-Crush is a premier provider of proppant and
logistics solutions to the North American energy industry.
Our portfolio of purpose-built production facilities are capable of
producing 13.4 million tons per year of high-quality
monocrystalline sand, a specialized mineral used as a proppant
during the well completion process, necessary to facilitate the
recovery of hydrocarbons from oil and natural gas wells. Our
production facilities' direct access to major U.S. railroads
enhance our delivery capabilities into consuming basins, while our
strategically located owned and operated in-basin terminals as well
as our in-basin production facility positions us within close
proximity to significant activity in all major oil and gas basins
for advantageous truck transportation. Our integrated
distribution system, enhanced by our innovative PropStreamTM
logistics solution, efficiently delivers proppant the "last mile"
into the blender, providing customers surety of supply from mine to
well site. For more information, visit www.hicrush.com.
Investor Contact:
Investor Relationsir@hicrush.com(713) 980-6270
Marc Silverberg, ICRmarc.silverberg@icrinc.com (646)
277-1293
Source: Hi-Crush Partners LP
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