Boart Longyear Limited Announces Entry into Term Loan Credit Facility and Extension to Existing ABL Facility
September 08, 2021 at 08:04 pm EDT
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Boart Longyear Limited as previously announced, Boart Longyear is pursuing a comprehensive recapitalisation (the ‘Recapitalisation’). As part the Recapitalisation process the Company is pleased to announce: On 8 September 2021, the Company and certain of its subsidiaries including, BLY US Holdings Inc. as borrower, entered into a five-year, USD 115 million term loan credit facility with HPS Investment Partners, LLC, Blue Torch Capital LP and other financial institutions identified in the agreement. the proceeds of which will be used in connection with the Recapitalisation, including to fully refinance: Incremental, short-term USD 50 million credit facility with Corre Partners Management, First Pacific Advisors, Nut Tree Capital Management, and certain other financial institutions affiliated therewith: and Existing backstop ABL/Term Loan credit facility with Centerbridge and others. Drawdown under the term loan credit facility is subject to satisfaction of certain conditions precedent, including successful completion of the Company's proposed recapitalisation under the Creditors' Schemes (the ‘Conditions’). Amendment and Extension to ABL Facility On the same date, the Company and certain of its subsidiaries also entered into further amendments to the existing ABL facility with PNC Bank, National Association ("PNC") reflective of the entry into the term loan credit facility and the Recapitalisation. As previously announced, the Company has also secured a four-year extension to the term of the existing ABL facility with PNC to 12 May 2025 to be effective upon the satisfaction of the Conditions.
Boart Longyear Group Ltd. is a provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies. It also has a presence in aftermarket parts and service, energy, mine de-watering, oil sands exploration, production drilling, and down-hole instrumentation. It operates in two segments: Global Drilling Services and Global Products, which includes the Veracio business. The Global Drilling Services segment provides a broad range of drilling services to companies in mining, energy and other industries. Its Global Drilling Services division operates for a diverse mining customers base spanning a range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals. The Global Products segment, which includes Veracio, manufactures and sells drilling equipment and performance tooling to customers in the drilling services and mining industries. Its water services include dewatering, water supply drilling, and pump services.