Houston-based frac sand producer Northern Frac Proppants II LLC (NFP) announced the successful completion of a $77 million senior secured credit facility consisting of a five-year term loan. Proceeds from the new credit facility will be used to expand NFP’s operating frac sand mine and production facility in Alma Center, Wis., and bring online additional frac sand processing facilities located on Class 1 rail lines in Wisconsin.
“We are very pleased with this financing, which allows us to execute on our strategic plan to become the leading, low-cost provider of high quality frac sand,” said Jeff Alston, NFP’s chief executive officer. “The new credit facility gives NFP the increased capital flexibility to build additional frac sand mine and processing facilities, and to move forward on future potential strategic opportunities that enhance our growth and build shareholder value. Achieving full production at Alma Center earlier this year, along with securing our capital needs from a top-ten global financial institution, validates NFP’s ability to execute our business plan to meet customer demands, operate efficiently and scale-up production. Continued strong customer demand and these successful operating achievements are moving us closer to full scale, steady-state operation at all our planned frac sand sites, which we expect to occur over the next 18 months.”
Dan Koxlien, NFP’s COO, said that, “Increased demand for our high-quality, coarse Northern White frac sand proppant allows us to accelerate plans to bring online additional mining and processing facilities located directly on the key Class 1 rail lines, all within an eight-mile radius and in proximity to barging. This gives NFP greater flexibility to attain operating scale and better serve our customers in all major North American shale plays,” he said.