Just days after disclosing a large position in Fairmount Santrol Holdings Inc. (NYSE:FMSA), Steven Cohen’s Point72 Asset Management reduced its stake in the sand-based proppant solutions provider.
According to an SEC filing dated December 15, Point72 beneficially owns approximately 11.49 million shares, or a 5.2% interest, in Ohio-based Fairmount, down from 13.93 million shares, or a 6.2% position, as disclosed on December 7.
The current position, however, is still significantly higher than at the end of the third quarter, when Point72 reported that it held 2.15 million shares in Fairmount with a market value of $18.2 million.
Narrows Net Loss, Cuts Debt
Fairmount narrowed its attributable net loss in the third quarter to approximately $20.6 million, or 11 cents per share, from $46.2 million or 29 cents per share, recorded in the year-ago period as it realized early signs of improvement in the proppant market. The loss included pre-tax fees totaling $9.8 million.
Revenues, meanwhile, slid 21% year over year to $134.8 million.
The company also recently announced that it prepaid about $86.4 million of term loans outstanding under its current credit agreement, which will allow it to bring down its cash interest expense by about $5.5 million over the next 20 months.
Despite these positive developments, Fairmount’s principal stockholder, ASP FML Holdings LLC, opted to sell 23.0 million shares in the former at about $8.54 a share in an underwritten public offering that closed December 7.
Fairmount will not receive any proceeds from the offering.
Point72’s Top Equity Picks
The fund’s largest position is SPDR S&P 500 ETF Index Depositary Receipts with about 3.29 million shares held at the end of the third quarter for a market value of $710.98 million. The SPDR position represents 5.0% of Point72’s portfolio.
Point72 also owns 419,288 shares in Alphabet Inc. valued at $337.13 million. This position comprises 2.37% of the fund’s portfolio.
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