Boart Longyear Inc.

Boart Longyear Takes Another Positive Step Forward to Improve Capital Structure

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Source: Boart Longyear Inc.

SALT LAKE CITY, UTAH, USA -- 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.

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