Preferred Sands reveals price talk on $430 million credit facility

By Sara Rosenberg

New York, Nov. 16 - Preferred Sands LLC came out with price talk on its $430 million five-year credit facility as the deal launched with a bank meeting on Wednesday afternoon, according to a market source.

The $30 million revolver and $175 million term loan A are talked at Libor plus 450 basis points with an offer price of 99, and the $225 million term loan B is talked at Libor plus 500 bps to 525 bps with a 1.5% Libor floor and an original issue discount of 98 to 981/2, the source said.

The B loan has 101 soft call protection for one year.

Amortization on the term loan A is 7.5% in years one and two, 15% in year three, 20% in year four and 25% in year five, with the balance due at maturity.

The term loan B amortizes at a rate of 1% per year and includes a 50% excess cash flow sweep with step-downs tied to leverage, the source added.

Commitments are due on Dec. 2.

Barclays Capital Inc. and KeyBanc Capital Markets LLC are the joint bookrunners on the deal and lead arrangers with J.P. Morgan Securities LLC.

Proceeds will be used to refinance existing debt, make a small acquisition and buy out some minority investors.

Leverage is 4.3 times for this year pro forma, and on a run-rate basis, it is 2.7 times.

Preferred Sands is a Radnor, Pa.-based provider of silica sand products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.