Boart announces refinancing

Boart Longyear plans to arrange refinancing on credit facilities of US$850 million.

Boart Longyear plans to arrange refinancing of its credit facilities at a lower level than the current US$850 million, the company announced to the Australian Securities Exchange.

The mining drill company has agreed with a syndicate of banks to complete the refinancing and reduce its debt levels by the end of the year, it said in the statement.

Boart said conditions imposed on the deal make its success unpredictable.

“Completion remains subject to a number of requirements, conditions and approvals,” the company said.

“Given such risks and uncertainties, the company is not able to give any assurances as to when, or if, a refinancing and extension will be consummated.”

News of the refinancing last Friday pushed the company’s share price up 6.3% to 25.5 cents.

Boart Longyear has previously cut its workforce in an effort to decrease costs and said it wants to reduce debt levels from US$764 to less than US$700 million by the end of the year.

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