Today, Pattison announced the closing of a $17 million credit facility funded by Amerisource Business Capital.
CLAYTON, IOWA: – Pattison Company, a leading provider of high-quality industrial sand, construction aggregate, armor stone and rail car storage, will use the proceeds to refinance existing term debt and equipment debt, new projects, and working capital.
Kyle Pattison, CEO and owner of Pattison, said, “We are very pleased with the pricing, structure and covenants of the package. Amerisource will be an important partner going forward. This refinancing gives us an exceptionally strong balance sheet and the liquidity to take advantage of the numerous opportunities we have before us. Our sand, aggregate and storage businesses are all growing, and we have several new initiatives. We deeply appreciate the intense due-diligence Amerisource performed and their response which was tailored to meet all our needs.”
Bill Herrington, EVP of Amerisource, added: “We are very pleased to partner with Kyle and the entire Pattison team. The company has a rich history and track record, and we look forward to supporting their continued growth and expansion.”
The facility was arranged by JFM Capital Advisors, LLC and CS Merchant Capital Partners. Joe Maly, Managing Partner of JFM Capital Advisors, said, “The high overall interest level this transaction generated in the credit market is a testament to Pattison's diversified business model, their high caliber management and great team.”
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We're located in northeast Iowa. The company operates a mine that is ideally located with direct access to the main line of the Canadian Pacific Railroad, the Mississippi River and a Trans load on the WSOR/BNSF. Pattison has been mining industrial sand since 2007 and producing construction aggregate since 2017. Spanning 750 acres, Pattison's facility has production capacity for the next 30 years. This facility has tremendous growth potential by linking Rail to River to low cost underground storage to railcar storage. Working across several industries and services, each industry will balance the other's business cycles, providing greater stability for co-workers and customers.
The company is wholly owned by the Pattison family. The family has successfully owned and operated businesses since 1950. The company and co-workers have consistently proven their commitment to their customers, employees, community, industry and the environment. The Pattison team has a deep passion for bringing value to customers, taking pride in their innovation and adaptability.
The frac sand business is but one example. Pattison selected the St Peter formation for all of the sand that it mines. Some is now sold for dairy bedding. Located on the CP & BN, Pattison can reach a wide range of markets where the economics work. Partnering with companies who seek a long term, dependable relationship. The company has made many changes to meet customer expectations. Production capacity has grown from 800,000 to 3,000,000 tons per year. With hundreds of cars on site, unit trains are rapidly assembled. Capacity and mixtures of sand can be adjusted on the fly to meet changing demand at minimal cost to customers.
The company produces its high quality limestone aggregates for concrete, asphalt, secondary roads, erosion control, rip rap, armor stone and ice control. The company currently produces 300,000 to 500,000 tons of aggregate per year and has the capacity to increase production to 3,000,000 tons per year. Pattison's products receive the highest ratings in their approvals from IA, MN, WI, MO & NE DOT's as well as the Army Corps of Engineers.
In 2020 Pattison initiated its railcar storage business to reduce car storage costs. This has turned into a huge opportunity to diversify from frac sand cycles by providing storage for rail cars used for sand, rock and other products. This exemplifies Pattison's industry-changing innovation that adds value for our customers. Providing multiple services at one location lowers costs for all those requiring rail storage or loading.
Our sand and aggregate businesses are growing. We are exploring new and exciting initiatives. With adequate capital, our great team of co-workers and an enlarging circle of loyal customers, we at Pattison are now positioned for strong growth going forward.