U.S. Silica readies launch of $260 million term loan for Wednesday

By Sara Rosenberg

New York, May 17 - U.S. Silica is scheduled to hold a bank meeting on Wednesday to launch a $260 million six-year term loan, according to a market source.

BNP Paribas Securities Corp. is the lead bank on the deal.

Proceeds will be used to take out existing mezzanine debt and fund a distribution to the holding company.

The loan is being structured as an amendment and add-on. The amendment is to allow for the upsizing, the source said.

In May 2010, the company got a $165 million term loan for a dividend recapitalization that is priced at Libor plus 400 basis points with a 1.75% Libor floor, and was sold at an original issue discount of 991/2.

U.S. Silica is a Berkeley Springs, W.Va.-based producer of ground and unground silica sand, kaolin clay, aplite and related industrial minerals.

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