DEBT-laden Boart Longyear is expected to carry out an equity recapitalisation.
The news comes in spite of claims that the mining services company is well positioned for additional industry recovery in 2010 and beyond.
The drilling company plans to raise cash through a $US341m (about $404m) one-for-one entitlement offer to all shareholders, a $US101m (about $119m) placement and, subject to shareholder approval, a further $US193m (about $228) placement.
This would reduce the group’s debt by 80%. The proceeds would be used to repay a $US585m (about $693) facility due in April 2010.
Boart Longyear, which operates about 1200 drilling rigs globally and makes drill products, says it expected full-year revenue to decline around 50% from 2008.
But Chief executive Craig Kipp maintains he is pleased with the group’s financial performance in the first six months of 2009 given the challenges it has faced.
Add a comment