U.S. Silica Receives Ratings Upgrade from S&P
FREDERICK, Md.--(BUSINESS WIRE)-- U.S. Silica Holdings, Inc. (NYS: 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. Silica
U.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.
Cautionary Information Regarding Forward-Looking Statements
Any statements in this press release that are not entirely historical in nature constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements involve risks and uncertainties, are only predictions and may differ materially from actual future events or results. For important information regarding forward-looking statements, please read page 1 of the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2012.
U.S. Silica Holdings, Inc.
Director of Investor Relations and Corporate Communications
KEYWORDS: United States North America Maryland
The article U.S. Silica Receives Ratings Upgrade from S&P originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.