PNC Bank and National City Bank have completed a $120 million credit for Fairmount Minerals, a deal that was oversubscribed by over 100% and includes 14 banks. The Chardon, Ohio-based industrial sand provider used some of the credit to distribute dividends to shareholders and also to refinance debt. There were no requirements at this time to do so, noted Jenniffer Deckard, cfo at Faimount. "It was just good timing for the company," she said.
PNC and National City also led the company's previous $120 million deal. The approximately $64 million outstanding on the former facility was paid down with the new credit. The line consists of a five-year $30 million revolver, a $60 million "A" piece and a six-year $30 million "B" piece. The structure of the credit remains the same, but pricing on the new facility increased by 11/2%, said Deckard. The pro rata is priced at 3-33/4% over LIBOR, depending on leverage; the "B" loan is priced at a flat rate of LIBOR plus 4%.