Smart Sand Partners L.P. has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were set for the offering, but the filing is for $100 million. The company will list on the Nasdaq Global Market under the symbol SSLP. The underwriters for the offering are Goldman Sachs and Credit Suisse.
Smart Sand Partners is pure-play, producer of Northern White frac sand, which is a preferred proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The company owns and operates a sand mine and related processing facility on 1,168 contiguous acres near Oakdale, Wis. At this facility, it has approximately 217 million tons of proven recoverable sand reserves and 64 million tons of probable recoverable sand reserves as of the end of June.
Northern White sand, which is found predominantly in Wisconsin and limited portions of the upper Midwest region of the United States, is highly valued by oil and natural gas producers as a preferred proppant due to its favorable physical characteristics.
For the year ended in December, Smart Sand Partners generated pro forma adjusted EBITDA of $16.4 million and pro forma net income of $12.4 million. For the nine months ended in September, the company generated pro forma adjusted EBITDA of $26.6 million and pro forma net income of $23.1 million.
The general partner for the company is Smart Sand GP and the sponsor is Smart Sand Holdings, both private companies. In the filing the relationship with the sponsor is described as:
Smart Sand Holdings LLC, our sponsor, is owned by members of our management team and a fund managed by Clearlake Capital Group, L.P., which, together with its affiliates and related persons, we refer to as Clearlake.
Clearlake is a leading private equity firm with significant investing expertise in energy and other related industries. Founded in 2006, Clearlake is focused on complex private equity and special situation transactions. With over $1.4 billion of regulatory assets under management, Clearlake (and its professionals) have a history of partnering with portfolio company management teams to transform and grow companies.