Hi-Crush launches $200 million term loan B at Libor plus 375-400 bps

By Sara Rosenberg

New York, April 10 - Hi-Crush Partners LP launched on Thursday its $200 million seven-year senior secured term loan B (B2/B) with price talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Commitments are due on April 23, and closing is targeted for April 28.

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.

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 subject to regulatory approvals and other conditions.

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

© 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.