Emeco refinances debt with US$335 million note offering

Emeco has refinanced its debt facilities with a US$335 million senior secured notes offering.

This offering is in conjunction with a new A$50 million secured Australian bank facility.

Emeco announced the pricing today, of the US$335 million in aggregate principal amount of 9.875% senior secured notes due in 2019, to institutional buyers in the US. 

Emeco saw a rush on the offering, stating that "the offering was oversubscribed with a high quality order book," however it added that "the company reduced the size of the notes offering from US$360 million to US$335 million due to continued debt pay from from operating cash flow and asset disposals since December 31, 2013," which reduced its refinancing needs.

The proceeds of the offering will be used to pay existing debt outstanding under the USPP Notes and Australia senior bank facilities.

Once it has carried out the refinancing, Emeco says it will have access to around A$50 million through a multi-currency revolving credit facility.

"The notes, together with the new bank facility will provide Emeco with a more flexible and sustainable debt structure and gives the company the required balance sheet capacity to improving market conditions," it said in a company statement. 

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