Emerge Energy Services LP announced that it has entered into a $75 million Second Amended and Restated Revolving Credit and Security Agreement among the Partnership, the subsidiary borrowers, and PNC Bank, National Association, as administrative agent; a new $215 million Second Lien Note Purchase Agreement; and a Common Unit Purchase Agreement for the private placement of approximately $6.0 million of its common units representing limited partner interests in the Partnership. Houlihan Lokey Capital, Inc. served as lead placement agent in connection with the financing.

The Revolving Credit Agreement provides for a $75 million asset-based revolving credit facility, and a $20 sublimit for the issuance of letters of credit. The Revolving Credit Agreement matures on January 5, 2022. Substantially all of the Partnership's assets are pledged as collateral on a first lien basis. The credit facility will be available to refinance existing indebtedness, fund fees and expenses incurred in connection with the credit facility and for general business purposes, including working capital requirements, capital expenditures, permitted acquisitions, making debt payments when due, and making distributions and dividends. The Revolving Credit Agreement contains various covenants and restrictive provisions and also requires the maintenance of certain financial covenants, including a maximum total leverage ratio, a minimum fixed charge coverage ratio, and minimum liquidity.

"This refinancing marks an important milestone for Emerge Energy as we start 2018 on a highly positive note," commented Ted W. Beneski, Chairman of the Board of Directors of the general partner of Emerge Energy. "The transaction provides the necessary capital and flexibility to complete our previously announced San Antonio expansion plans. We expect the initial portion of the new plant will be operational in May, and ultimately we expect the San Antonio operation to have a nameplate capacity of approximately 4 million tons per year once we receive the final environmental permits."

Rick Shearer, Chief Executive Officer of the general partner of Emerge Energy, added, "Demand for both northern and in-basin frac sand remains strong, and our position as a leading frac sand producer will be bolstered with our expanded in-basin operations. Recent customer contract discussions regarding product from the San Antonio plant indicate that our facility will be highly utilized from the onset, and continued positive feedback from the marketplace validates our previously made decision to upsize the plant to an expected 4 million tons per year. Once the San Antonio operation achieves full scale, we expect to have approximately 4.6 million tons per year of in-basin capacity including our Kosse, Texas operation, or approximately 42% of our expected 10.9 million tons per year of total production capacity. Our full suite of in-basin, northern white, and technology-driven sand allows us to serve the full range of frac sand needs for the oil and gas industry."