U.S. Silica Announces Closing of $425 Million Senior Secured Credit Facility
July 23 2013 - 2:51PM
Business Wire
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.
U.S. Silica Holdings, Inc.Michael LawsonDirector of Investor
Relations and Corporate
Communications301-682-0304lawsonm@ussilica.com
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