Hi-Crush Partners to launch $200 million term loan B on Thursday

By Sara Rosenberg

New York, April 8 - Hi-Crush Partners LP is scheduled to hold a bank meeting at 10:30 a.m. ET on Thursday to launch a $200 million senior secured term loan B, according to a market source.

Morgan Stanley Senior Funding Inc., Barclays and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of certain equity interests in Hi-Crush Augusta LLC, the owner of a raw frac sand processing facility located in Augusta, Wis., for $224.25 million.

With the term loan, the company also plans on getting a $150 million revolver that is being led by Amegy Bank, the source added.

At the closing of the acquisition, the partnership's preferred equity interest in Augusta will be converted into common equity interests in Augusta, and the partnership will own 98% of Augusta's common equity interests.

Closing is expected by mid-May, subject to regulatory approvals and other conditions.

Hi-Crush is a Houston-based integrated producer, transporter, marketer and distributor of high-quality monocrystalline sand.

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