U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced that Standard & Poor’s Rating Services has raised its corporate rating on the Company to BB- from B+ with a stable outlook. At the same time, S&P raised the issue-level rating on the Company’s $255 million term loan to BB from BB-.
Commenting on its rationale for the ratings change, S&P noted that “the upgrade reflects our view that frac sand and industrial sand supplier U.S. Silica’s improved operating performance, cash flow generation and credit measures are sustainable now and that its former financial sponsor has loosened control over the company. Our view of the business balances the company’s good market position in both its frac and industrial business against its small overall size and our expectation for ongoing volatility in frac sand markets over the next several years as the market matures.”
Don Merril, Vice President and Chief Financial Officer for U.S. Silica added that the ratings upgrade “is a testament to the success of our business model and our ability to generate strong cash flows. Ultimately, this provides us with increased financial flexibility to continue to grow the company and return value to shareholders.”
About U.S. SilicaU.S. Silica Holdings, Inc., a Delaware corporation, is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market. The company also processes ground and unground silica sand for a variety of industrial and specialty products end markets such as glass, fiberglass, foundry molds, municipal filtration and recreational uses. During its 100-plus year history, U.S. Silica Holdings, Inc. has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 250 products to customers across these end markets. U.S. Silica Holdings, Inc. is headquartered in Frederick, Maryland.
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