SALT LAKE CITY--(EON: Enhanced Online News)--Boart Longyear Limited (ASX: BLY) today announces that its wholly owned subsidiary, Boart Longyear Management Pty Limited (the “Issuer”), has completed its previously announced offering of $300.0 million in aggregate principal amount of its senior secured notes due 2018 (the “Secured Notes”). The Secured Notes were offered in a private offering to qualified institutional buyers in the United States pursuant to Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”), and to certain persons outside the United States in offshore transactions in reliance on Regulation S under the Securities Act.
The net proceeds of the offering will be used to substantially pay down loans outstanding under Boart Longyear’s revolving credit facility and to pay fees and expenses related to the offering.
The Secured Notes will pay interest at a rate of 10.00% per annum, will pay interest on April 1 and October 1 of each year commencing on April 1, 2014, and will mature on October 1, 2018.
The Secured Notes are guaranteed by Boart Longyear Limited and certain of its subsidiaries (other than the Issuer). The Secured Notes are to be secured by a first-priority lien on substantially all of the Issuer’s and the guarantors’ tangible and intangible assets, including the outstanding capital stock held by Boart Longyear, the Issuer and the guarantors, and by certain owned real property and are also to be secured by a second-priority lien on substantially all of the Issuer’s and the guarantors’ accounts receivable, inventories, cash and related proceeds.
A holder of the Secured Notes may require the Issuer to repurchase some or all of the Secured Notes for cash upon the occurrence of a defined “change of control” event, at a price equal to 101% of the principal amount of the Secured Notes being repurchased, plus accrued and unpaid interest. The Issuer’s ability to redeem the Secured Notes prior to maturity is subject to certain conditions, including in certain cases the payment of make-whole amounts.
The indenture governing the Secured Notes includes covenants that restrict Boart Longyear’s ability to engage in certain activities, including incurring additional indebtedness and paying dividends, subject in each case to specified exceptions and qualifications set forth in the indenture.
This notice does not constitute an offer to sell, or the solicitation of an offer to buy, the Secured Notes or any other securities. Any offers of the Secured Notes were made only by means of a private offering memorandum. The Secured Notes have not been registered under the Securities Act, or the securities laws of Australia or any other jurisdiction. The Secured Notes may not be offered or sold in the United States without registration under the Securities Act or an applicable exemption from such registration requirements.
About Boart Longyear
With over 120 years of expertise, Boart Longyear is the world’s leading provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies globally. It also has a substantial presence in aftermarket parts and service, energy, mine de-watering, oil sands exploration and production drilling.
The Global Drilling Services division operates in over 40 countries for a diverse mining customer base spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals. The Global Products division designs, manufactures and sells drilling equipment, performance tooling, and aftermarket parts and services to customers in over 100 countries.
Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia. More information about Boart Longyear can be found at www.boartlongyear.com. To get Boart Longyear news direct, visit http://www.boartlongyear.com/rssfeed.