Boart Longyear Completes $300 Million Debt Offering
September 27 2013 - 12:13PM
Business Wire
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.
Boart Longyear LimitedMonika Portman, +1 801-952-8451Director,
Corporate Communicationsmonika.portman@boartlongyear.com
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