Boart Longyear Updates Terms and Prices US$300.0 Million Debt Offering
September 20 2013 - 4:17PM
Business Wire
Boart Longyear Limited (ASX: BLY) (“Boart Longyear”) today
announces that its previously announced $300.0 million debt
offering has been priced. In lieu of offering units consisting of
secured notes and unsecured notes as previously announced, Boart
Longyear’s subsidiary, Boart Longyear Management Pty Limited (the
“Issuer”), is offering $300.0 million in aggregate principal amount
of its senior secured notes due 2018 (the “Secured Notes”). The
Secured Notes are being 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 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 will be guaranteed by Boart Longyear Limited
and certain of its subsidiaries (other than the Issuer). The
Secured Notes will 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 will also be secured by a second-priority lien on
substantially all of the issuer’s and the guarantors’ accounts
receivable, inventories, cash and related proceeds.
The net proceeds of the offering will to 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. Settlement of the debt offering is expected to occur
on September 27, 2013.
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 will be made only by
means of a private offering memorandum. The Secured Notes are not
being 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.
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