Fairmount Minerals Said to Shift Funds in $1.28 Billion of Loans

Fairmount Minerals Ltd., the industrial-sand producer owned by American Securities LLC, increased the size of a loan maturing in four years while decreasing a facility that comes due in six years, according to a person with knowledge of the transaction.

A $325 million first-lien piece, up from $250 million, will pay interest at 4 percentage points more than the London interbank offered rate with no floor, said the person, who asked not to be identified because the terms are private. An $885 million first-lien potion, reduced from $960 million, will pay interest at 4 percentage points more than Libor with a 1 percent minimum on the lending benchmark, the person said.

The transaction, which supports the Chesterland, Ohio-based company’s acquisition of FTS International Services Inc.’s sand reserves, includes a $75 million revolving line of credit that expires in five years, the person said. All slices of the debt are offered to lenders at 99.5 cents on the dollar.

Barclays Plc, KeyCorp, PNC Financial Services Group and Wells Fargo & Co. are arranging the financing and lenders must let the banks know by 5 p.m. today if they will participate, the person said.

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