Hi-Crush Partners LP Completes Acquisition of Augusta Facility and Closes Long-Term Financing Transactions
29 April 2014 - 1:00AM
News Release
Houston, Texas - April 28, 2014 - Hi-Crush
Partners LP (NYSE: HCLP) (the "Partnership" or "Hi-Crush")
announced today the successful completion of its previously
announced acquisition of certain equity interests in Hi-Crush
Augusta LLC ("Augusta"), the entity that owns a raw frac sand
processing facility located in Augusta, Wisconsin, for cash
consideration of $224.25 million. At the closing of the
acquisition, the Partnership's preferred equity interest in Augusta
was converted into common equity interests in Augusta. The
Partnership now owns 98% of Augusta's common equity interests.
"This is an exciting day for us," said Robert E.
Rasmus, Co-Chief Executive Officer of Hi-Crush. "By acquiring
the Augusta facility we have doubled the Partnership's production
capacity to 3.2 million tons per year, and have established a
baseline for future expansion. We remain focused and ready
for the future, and for meeting the market's increasing need for
Hi-Crush sand."
Hi-Crush also announced today that it closed on a
new $200 million Senior Secured Term Loan Credit Facility ("Term
Loan Facility"). The borrowings under the Term Loan Facility
were used to partially fund the Augusta acquisition and to pay
related fees and expenses. The Term Loan Facility will bear
interest at LIBOR plus 3.75% per annum with a 1.00% LIBOR floor, is
priced at 99.0% of par value, and will mature in 2021. The
term loan was rated B+ (Stable) by Standard and Poor's Ratings
Agency and B2 (Stable) by Moody's Investor Service.
Hi-Crush also announced today that it has closed
on a new five-year $150 million Revolving Credit Facility
("Revolving Credit Facility"). The Revolving Credit Facility,
currently undrawn, will mature in 2019. The primary purpose
of the Revolving Credit Facility is to finance future expansion
activities, as well as for general corporate purposes.
Borrowings under the Partnership's prior revolving credit
facility, used to finance the acquisition of the preferred interest
in Augusta in January 2013 and the acquisition of D & I Silica,
LLC in June 2013, were fully repaid in April 2014 with the net
proceeds from the Partnership's previously announced primary
offering of 4.25 million common units representing limited
partnership interests in the Partnership.
"These new corporate facilities form an important
piece of our debt capital structure. We have taken advantage
of the currently strong debt markets to increase our bank
commitments, further strengthen our sources of funding and extend
the maturity of our debt," said Laura Fulton, Chief Financial
Officer of Hi-Crush. "Our balance sheet is well-financed and
remains flexible for future growth."
About Hi-Crush
Hi-Crush is an integrated producer, transporter,
marketer and distributor of high-quality monocrystalline sand, a
specialized mineral that is used as a "proppant" (frac sand) to
enhance the recovery rates of hydrocarbons from oil and natural gas
wells. Our reserves, which are located in Wyeville, Wisconsin and
Augusta, Wisconsin, consist of "Northern White" sand, a resource
that exists predominately in Wisconsin and limited portions of the
upper Midwest region of the United States. Hi-Crush owns and
operates the largest distribution network in the Marcellus and
Utica shales, and has distribution capabilities throughout North
America. For more information, visit www.hicrushpartners.com.
Forward-Looking
Statements
This press release includes forward-looking
statements that we believe to be reasonable as of today's date.
Forward-looking statements give our current expectations, and
contain projections of results of operations or of financial
condition, or forecasts of future events. Words such as "may,"
"assume," "forecast," "position," "predict," "strategy," "expect,"
"intend," "plan," "estimate," "anticipate," "could," "believe,"
"project," "budget," "potential," or "continue," and similar
expressions are used to identify forward-looking statements. They
can be affected by assumptions used or by known or unknown risks or
uncertainties. Consequently, no forward-looking statements can be
guaranteed. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Hi-Crush's reports filed with the Securities and
Exchange Commission ("SEC"), including those described under Item
1A of Hi-Crush's Form 10-K for the year ended December 31, 2013 and
any subsequently filed 10-Q. Actual results may vary materially.
You are cautioned not to place undue reliance on any
forward-looking statements. You should also understand that it is
not possible to predict or identify all such factors and should not
consider the risk factors in our reports filed with the SEC or the
following list to be a complete statement of all potential risks
and uncertainties. Factors that could cause our actual results to
differ materially from the results contemplated by such
forward-looking statements include: the volume of frac sand we are
able to sell; the price at which we are able to sell frac sand; the
outcome of any pending litigation; changes in the price and
availability of natural gas or electricity; changes in prevailing
economic conditions; and difficulty collecting receivables. All
forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. Hi-Crush's
forward-looking statements speak only as of the date made and
Hi-Crush undertakes no obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor
Contact:
Investor Relations
ir@hicrushpartners.com
(713) 960-4811
Source: Hi-Crush Partners LP
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Hi-Crush Partners LP via Globenewswire
HUG#1780780
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