Hi-Crush gets $200 million ABL revolver priced at Libor plus 225 bps

By Sarah Lizee

Olympia, Wash., Aug. 2 – Hi-Crush Partners LP entered into an ABL credit agreement on Wednesday with JPMorgan Chase Bank, NA as administrative agent providing for a $200 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility replaced the company’s second amended and restated $150 million revolving credit facility dated Dec. 22, 2017 with ZB, NA as administrative agent, extending the maturity to 2023 from 2022.

The revolver includes a $50 million sublimit for letters of credit, with the ability to increase the amount of total permitted borrowings up to $300 million.

Borrowings bear interest at Libor plus a margin ranging between 175 basis points and 250 bps, based on the partnership’s leverage ratio. Initially, interest is Libor plus 225 bps.

On Monday, Hi-Crush terminated the previous revolver, which had no outstanding loans.

The company also repaid its outstanding debt under its term loan credit agreement dated as of Dec. 22, 2017 with Morgan Stanley Senior Funding, Inc. as administrative agent and collateral agent. The repayment was made prior to the maturity date and no material early payment penalties were incurred by the partnership.

JPMorgan and ZB, NA, which does business as Amegy Bank, are joint lead arrangers and bookrunners.

Hi-Crush is a Houston-based producer, transporter, marketer and distributor of premium frac sand.

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