SALT LAKE CITY, UTAH, USA — November 5, 2014 — Boart Longyear Limited (ASX:BLY), a leading global supplier of drilling services, drilling equipment and performance tooling for mining and drilling companies, announced today that it has successfully tendered for US$105 million principal amount of its 10% Senior Secured Notes, which are due in October 2018 (the “Notes”).

The tender was launched concurrently with the Company’s announcement last month that it had entered into an agreement with Centerbridge Partners, L.P. to implement a comprehensive recapitalization.  Under the terms of that agreement, the full subscription of the tender offer enables the Company to arrange an asset-backed loan (ABL) to replace up to $50 million of the Company’s $120 million Tranche A term loan, which was funded by Centerbridge on October 23, 2014 as part of the initial recapitalization transactions.

Richard O’Brien, President and Chief Executive Officer of Boart Longyear, commented, “We are pleased with the success of the tender offer and the opportunity it provides us to replace a portion of the Tranche A term loan with a facility that allows for revolving borrowings at more attractive rates.  We are actively engaged with interested banks in arranging an ABL facility and will disclose details to the market at the appropriate time.  We consider this is another positive step forward in our efforts to improve our capital structure.”

The principal amount of the tender will be funded via proceeds from a US$105 million term loan (“Tranche B”) provided by Centerbridge, the terms of which were announced by the Company on October 23, 2014.  Redemption of the tendered notes and corresponding funding of the Tranche B term loan is expected to occur on November 7, 2014.  The “covenant-lite” Tranche B term loan, which also matures in October 2018, will accrete interest and thereby provide incremental liquidity to the Company.

The full ASX release is available here: www.boartlongyear.com/company/investors. To read the latest announcements and to watch the CEO video announcing the recapitalization transaction, visit: www.breakingnews.boartlongyear.com.

Disclaimer

This announcement includes forward-looking statements within the meaning of securities laws. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions.  Any forward-looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary materially from any projections and forward-looking statements.

About Boart Longyear

Approaching its 125^th Anniversary in 2015, 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 https://www.boartlongyear.com/rssfeed.
 

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Investors:
Jay Clement
Vice President, Investor Relations/Treasury
Australia +61 (0) 8 8375 8300
USA +1 801 401 3712
ir@boartlongyear.com
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Media:
David Symons
Australia
Cato Counsel
Sydney:+61 (0) 2 8306 4244
Mobile:+61 (0) 410 559 184
david@catocounsel.com.au
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