Introductory Note
This Current Report on Form 8-K is being filed in connection with the completion of the previously announced Merger (as described below) pursuant to the Agreement and Plan of Merger, dated as of April 26, 2024 (the “Merger Agreement”), by and among U.S. Silica Holdings, Inc. (the “Company”), Star Holding LLC (“Parent”) and Star Merger Co. (“Merger Sub”).
On July 31, 2024 (the “Closing Date”), pursuant to the Merger Agreement, Merger Sub merged with and into the Company (the “Merger”), with the Company surviving the Merger (the “Surviving Corporation”) as a wholly owned subsidiary of Parent. Parent and Merger Sub are affiliates of certain funds (the “Apollo Funds”) managed by affiliates of Apollo Global Management, Inc.
Item 1.01. |
Entry into a Material Definitive Agreement. |
2031 Notes
On the Closing Date, Parent entered into an Indenture (as supplemented, the “2031 Notes Indenture”), among Parent, Star Parent Holding I LLC (“Holding I”), certain subsidiaries of Holding I (together with Holding I, the “Intermediate Guarantors”) and Wilmington Trust, National Association (the “Trustee”), governing Parent’s issuance of 8.750% Senior Secured Notes due 2031 with an initial aggregate principal amount of $350 million (the “2031 Notes”). On the Closing Date, the Company and certain subsidiaries of the Company (together with the Company, the “Subsidiary Guarantors”, and together with the Intermediate Guarantors, the “Guarantors”) entered into a supplemental indenture to the 2031 Notes Indenture. Pursuant to the 2031 Notes Indenture, the Company and the other Guarantors agreed to guarantee Parent’s obligations under the 2031 Notes Indenture and the 2031 Notes. The obligations under the 2031 Notes and the related guarantees are secured on a first-priority basis on assets of Parent, the Company and the other Guarantors (subject to certain exclusions and exceptions). The 2031 Notes Indenture and the 2031 Notes include restrictive covenants, events of default and other provisions that are customary for obligations of this type.
First Lien Credit Agreement
In addition, on the Closing Date, Parent entered into a First Lien Credit Agreement (the “First Lien Credit Agreement”) among Holding I, Star Parent Holding II LLC (“Holding II”), Parent, as borrower, BNP Paribas, as administrative agent, and the lenders party thereto, governing (i) Parent’s revolving credit facility in an aggregate principal amount of $175 million, maturing on the fifth (5th) anniversary of the Closing Date and (ii) Parent’s term loan B facility in an aggregate principal amount of $775 million, maturing on the seventh (7th) anniversary of the Closing Date. The obligations under the First Lien Credit Agreement are secured (i) on a first-priority basis on assets of Parent, the Company and the other Guarantors (subject to certain exclusions and exceptions) and (ii) by a pledge of the equity interests of Holding I directly held by Holding II. The First Lien Credit Agreement includes representations and warranties, restrictive covenants, events of default and other provisions that are customary for facilities of this type.
Item 1.02. |
Termination of a Material Definitive Agreement. |
Effective as of the Closing Date, all outstanding amounts and obligations under that certain Fourth Amended and Restated Credit Agreement, dated as of March 23, 2023, by and among U.S. Silica Company, a subsidiary of the Company, as borrower, USS Holdings, Inc., a subsidiary of the Company, as parent, the subsidiary guarantors from time to time party thereto, BNP Paribas, as administrative agent, and the lenders party thereto, as amended by that certain Amendment No. 1 to Credit Agreement dated as of March 25, 2024 and as further amended, restated or modified prior to the date hereof, were repaid in full, all outstanding obligations and commitments thereunder were terminated and all related security interests and liens were released.
Item 2.01. |
Completion of Acquisition or Disposition of Assets. |
The information set forth in the Introductory Note, Item 3.01, Item 5.01, Item 5.02 and Item 5.03 of this Current Report on Form 8-K is incorporated by reference in this Item 2.01.