Smart Sand has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing terms were listed in the filing but the offering is valued up to $100 million. The company intends to list its shares on the Nasdaq Global Market under the symbol SND.
The underwriters for the offering are Credit Suisse and Goldman Sachs.
This company is a pure-play, low-cost producer of high-quality Northern White raw frac sand, which is a preferred proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells.
Smart Sand sells its products primarily to oil and natural gas exploration and production companies, such as EOG Resources, and oilfield service companies, such as Weatherford, under a combination of long-term take-or-pay contracts and spot sales in the open market.
Smart Sand owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin, at which it has roughly 244 million tons of proven recoverable sand reserves and approximately 92 million tons of probable recoverable sand reserves as of December 31, 2015, respectively. The company believes that with further development and permitting the Oakdale facility could ultimately be expanded to allow production of up to 9 million tons of raw frac sand per year.
In addition to the Oakdale facility, the company owns a second property in Jackson County, Wisconsin, called the Hixton site. As of August 2014, the Hixton site had approximately 100 million tons of proven recoverable sand reserves.
In the filing the company detailed its financial position:
For the year ended December 31, 2015 and six months ended June 30, 2016, we generated net income (loss) of approximately $4.5 million and $(2.2) million, respectively, and Adjusted EBITDA of approximately $23.9 million and $6.4 million, respectively.
The company intends to use a portion of the net proceeds from this offering to redeem all of its outstanding preferred stock and to repay the outstanding indebtedness under its existing revolving credit facility. The remaining net proceeds will be used for general corporate purposes.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
