Boart Longyear and Centerbridge Partners agree recapitalisation

Boart Longyear’s largest shareholder, Centerbridge Partners, has agreed to increase its investment in the company through a comprehensive recapitalisation plan. The agreement, parts of which are subject to approval by Boart Longyear’s shareholders, is designed to improve the company’s debt structure and liquidity. This will give Boart Longyear the liquidity to weather the challenges of the current depressed markets for drilling services and products and the financial strength to allow more time for those markets to recover. “This partnership with Centerbridge, an experienced investment firm and the company’s largest shareholder, will ensure that the Boart Longyear franchise, which will have been operating 125 years next year, remains fundamentally strong and valuable,” said Richard O’Brien, President and Chief Executive Officer of Boart Longyear.

The agreement with Centerbridge marks the successful completion of a strategic review process Boart Longyear’s Board of Directors and executive management team initiated in February. The goal was to create a more sustainable capital structure. Boart Longyear commenced the strategic review as it believed the status quo was unsustainable and the company required financial flexibility to withstanding current operating conditions until the drilling market returns.

Centerbridge Partners is an excellent strategic fit for Boart Longyear:

  • Centerbridge is dedicated to partnering with strong management teams across targeted industry sectors to help companies achieve their operating and financial objectives
  • Centerbridge brings significant capital and operational resources to bear for the benefit of all the company’s stakeholders
  • Centerbridge recognises Boart Longyear as the world’s leading drilling services and products business
  • The recapitalisation reflects a partnership between the company and Centerbridge and is not a change of control transaction.