Private equity firm KKR & Co. LP said on Friday that its special situations fund would lead an investment of more than $680 million in Preferred Sands, keeping one of North America's largest producers of sand for oil and gas producers in business, Reuters reported on Saturday. Headquartered in Radnor, Pa., privately held Preferred Sands produces and distributes frac sand and proppant materials used predominantly in oil and gas shale drilling. Its network of mines have the capacity to produce more than 9 billion pounds of sand every year. Preferred Sands tapped restructuring advisors last September after it failed to make timely payments on its bank loans, according to Moody's Investors Service Inc. The ratings service has attributed the company's woes to competition in the frac sand industry, its lack of high-quality sand reserves, and a less developed logistical network relative to its major rivals. KKR said that it had agreed to refinance the company through equity and debt of more than $680 million. A new first lien credit facility has been underwritten by KKR's capital markets arm and investment bank Jefferies Group LLC.
