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Equities

Apollo Secures $1.1B for US Silica Amid Industry Confidence

Apollo secures $1.1 billion for US Silica buyout, signaling confidence in fracking sand market amidst leveraged loan scarcity.

By Max Weldon

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5/8, 12:14 EDT
Apollo Global Management, Inc.
IDACORP, Inc.
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Key Takeaway

  • Apollo Global Management secures $1.1 billion for US Silica buyout, signaling confidence in the fracking sand industry.
  • Alpha Metallurgical buys back 6.6 million shares for $1.1 billion, showcasing strong financial health amid market challenges.
  • Latin Metals and AngloGold identify a promising drill corridor, highlighting ongoing investment in copper-gold exploration ventures.

Apollo Secures Financing for US Silica Buyout

Apollo Global Management Inc. has successfully arranged $1.1 billion in debt financing for its acquisition of US Silica Holdings Inc., a key player in the fracking sand industry for oil-and-gas drilling. The financing is being led by Barclays Plc and BNP Paribas SA, marking a significant move in a year where acquisition-related leveraged loans have been scarce. This scarcity has led investors to seek alternatives, boosting average prices in the secondary market to their highest in two years. The buyout, valued at $1.21 billion, was announced on April 26 and is anticipated to be finalized in the third quarter of this year. This development comes at a time when US Silica had recently repriced an $868 million term loan in March.

Mining Sector Updates

Alpha Metallurgical's Performance Amid Market Challenges

Alpha Metallurgical Resources reported a solid performance despite softer coal market conditions. CEO Andy Eidson highlighted a decrease in segment coal sales costs and an active share repurchase program, with 6.6 million shares bought back for $1.1 billion. This leaves the company with 13,007,215 shares outstanding, underlining its financial maneuvering in a challenging market.

Metals Acquisition and Capital Structure Simplification

The mining sector also saw strategic moves aimed at simplifying capital structures. Metals Acquisition Corp. offered warrant holders various options, including exercising their warrants, surrendering them on a cashless basis, or allowing redemption by the company. This initiative aligns with efforts to streamline financial structures within the mining industry.

Latin Metals and AngloGold's Exploration Ventures

Latin Metals, in collaboration with AngloGold, has identified a high-priority drill corridor in West Graben, with potential for significant copper-gold and epithermal gold deposits. This exploration initiative, leveraging advanced geophysical surveys and historical data, points to the untapped potential in the region, highlighting the ongoing search for valuable mineral deposits.

Idaho Strategic Resources' Production Boost

Idaho Strategic Resources reported an 80.6% increase in gold production and a significant reduction in sustaining costs. The company's strategic investments in production and exploration, along with cost-saving measures such as the purchase of the Butte Gulch property and a renewed contract with H&H Metals, underscore its commitment to unlocking the value of the Murray Gold Belt District and advancing rare earth projects.