Select Sands Corp. said that its subsidiary Select Sands America Corp. successfully negotiated and executed a new $8.1 million loan agreement with its bank to restructure its existing loans. Proceeds from the loan agreement are being used as follows:
• Approximately $4.2 million to fully repay the subsidiary’s existing construction loan.
• Approximately $3.9 million to partially repay the subsidiary’s existing line of credit.
• The loan agreement charges interest at 4.75% per annum, while the subsidiary’s prior construction loan charged interest at 5.25% per annum. The subsidiary will make payments on the loan agreement of $85,199 per month for 59 months starting on Sept. 4, 2021, and a lump sum payment of $4,619,705 on Aug. 4, 2026, that may be refinanced at the prevailing interest rate for an additional five years. The loan agreement is secured by the subsidiary’s property and buildings in Arkansas.
Zig Vitols, president and CEO of Select Sands, stated, “We are very pleased with this restructuring of the Subsidiary’s debt, as it frees up working capital and charges a reduced interest rate. In addition, the timing of the execution of the Loan Agreement is ideal as the U.S. economy continues to quickly recover from the pandemic. The result has been a material increase in crude oil demand, and we look forward to working closely with current and prospective customers to support their growing frac and industrial sand needs. In addition, the increased financial flexibility afforded by the Loan Agreement places us in a stronger position to potentially execute on other opportunities to prudently expand our business for the long-term benefit of our sharehold