Boart Longyear Announces Revolving Credit Facility Amendments Have Taken Effect
September 27 2013 - 12:16PM
Business Wire
Boart Longyear Limited (ASX: BLY) today announces that
the previously announced amendments to its revolving credit
facility have become effective. The amendments reduce the size of
the revolving credit facility from $450.0 million to $140.0
million, of which up to $120.0 million is available in the form of
revolving loans or letters of credit with the remaining $20.0
million being available only for the issuance of letters of credit
(subject to an overall sublimit on letters of credit of $100.0
million). In addition, the amendments:
- eliminate the existing maximum
gross-debt-to-EBITDA leverage ratio covenant;
- adjust the minimum interest coverage
covenant to a ratio of 1.55 to 1.0, which is tested quarterly;
- add a covenant requiring maintenance of
at least US$30.0 million in liquidity (defined to be unrestricted
cash plus availability under the revolving credit facility), which
is tested monthly; and
- add a covenant requiring maintenance of
a minimum asset coverage ratio of 1.25 to 1.0 (measured as accounts
receivable, inventory and unrestricted cash of guarantor
subsidiaries over total loans and letters of credit outstanding
under the revolving credit facility), which is tested monthly.
The amendments provide that the lenders under the revolving
credit facility have a first-priority security interest in accounts
receivable, inventories, cash and related assets and a
second-priority interest in substantially all other tangible and
intangible assets, including subsidiaries’ outstanding capital
stock, and in certain owned real property. The amendments also
limit Boart Longyear’s ability to incur additional indebtedness,
make capital expenditures, acquisitions or other investments, pay
dividends, and prepay or redeem its notes or certain other
indebtedness.
In connection with the amendments taking effect, Boart Longyear
applied approximately $296 million of the net proceeds of its
previously announced $300.0 million debt offering, plus available
cash of approximately $5 million, to substantially pay down the
$311 million in loans outstanding under the revolving credit
facility.
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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