New York-based private-equity firm KKR & Co. LP agreed to help refinance the capital structure of Radnor, Pa.-based Preferred Sands, KKR said July 25.
Under agreements, KKR and Jefferies LLC will “provide a comprehensive financing solution” of more than $680 million in debt and equity to the frack sand and resin producer, the firm added.
KKR invested in its own Special Situations fund, while KKR Capital Markets and an affiliate of Jefferies underwrote a new first-lien credit facility, the firm noted.
The transaction is scheduled to close July 31, KKR said.
"This is a long-term plan that enables us to further grow our industry-leading platform of products and services," said Michael O’Neill, CEO of Preferred Sands. The company is a major supplier of frack sand across North America, KKR said.
“We deeply appreciate that KKR worked with us in an expedited time frame to create a tailored solution to meet our immediate needs, with the flexibility to focus on our future growth plans and other opportunities,” he added.
“We believe Preferred Sands has an enviable position in the marketplace, and this is an investment in the team, the technology, and the future of a growing platform. We are pleased to partner with management and provide them with a long-term, flexible capital structure which will allow them to meet the needs of their customers,” said Harlan Cherniak, part of the Special Situations team.
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