CARBO Places $25 Million of Subordinated Debt Due 2019 and Announces Filing of Shelf Registration Statement

HOUSTON, May 23, 2016 /PRNewswire/ -- CARBO Ceramics Inc. CRR announced today that it has placed $25 million of 7% unsecured subordinated notes with two members of its Board of Directors.  The notes will mature on April 1, 2019 and require semi-annual interest payments.

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Gary Kolstad, President and CEO, said, "Building on our recently amended credit facility, we continue to execute on our plan to bolster our cash reserves.  We welcome the $25 million of debt on attractive terms and appreciate the commitment and confidence in the Company shown by the two Directors.  This cash infusion provides valuable financial flexibility at this point in the cycle." 

In addition, the Company announced that it has filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC).  Once the shelf registration is declared effective by the SEC, it will permit the Company to offer and sell up to $300 million of various debt and equity securities from time to time and through various methods of distribution.  As of the date of this release, the Company has no specific plans to offer the securities covered by the registration statement, and is under no obligation to offer the securities in the future. 

"We continue to explore avenues to strengthen the balance sheet, including the potential for monetization of certain assets.  The filing of our shelf registration statement positions us to access the capital markets on terms acceptable to us in the future, if the need arises," Mr. Kolstad concluded.

A registration statement relating to the $300 million of securities referred to above has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This news release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer of the securities will be solely by means of the prospectus included in the registration statement and one or more prospectus supplements that will be issued at the time of the offering.

About CARBO

CARBO focuses on integrating technologies to produce engineered solutions in its Design, Build, and Optimize the Frac^® technology businesses, delivering important value to E&P operators by increasing well production and EUR.  For more information, please visit www.carboceramics.com.  

Investor Contact:
Mark Thomas, Director, Investor Relations
(281) 921-6400

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SOURCE CARBO Ceramics Inc.