Select Sands Announces USD $8.1 Million Debt Restructuring
- Approximately USD $4.2 million to fully repay the Subsidiary's existing construction loan; and
- Approximately USD $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 September 4, 2021 and a lump sum payment of $4,619,705 on August 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 states, "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 shareholders."
ABOUT SELECT SANDS CORP.
Select Sands Corp. is an industrial silica product company developing its 100% owned, 520-acre Northern White, high quality silica sands project located in Arkansas, U.S.A. Select Sands' Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, and Louisiana than Wisconsin sources.
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to comments that include, but are not limited to, the intended use of proceeds of the Loan Agreement and its repayment terms, the U.S. economy will continue to quickly recover from the pandemic, the demand for crude oil, our current and prospective customers will have growing frac and industrial sand needs and that 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 shareholders. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
Please visit www.selectsands.com or contact:
|Zigurds Vitols |W. Joe O'Rourke |Wesley Harris
|President&CEO |Vice President Sales&Marketing|Investor
|Phone 844-806-7313|Phone: (713) 689-8000 |Phone: (832)
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