Business
Foraco International Announces Consummation of its Debt Refinancing Leading to a US$ 55.8 Million Reduction of its Debt
Foraco International Announces Consummation of its Debt Refinancing Leading to a US$ 55.8...
About this update from Foraco International Sa
[{"type":"text","content":"\n \n \n \n Foraco International Announces Consummation of its Debt Refinancing Leading to a US$ 55.8 Million Reduction of its Debt\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n \n NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n \n \n \n \n \n \n TORONTO\n \n and MARSEILLES,\n \n France\n \n ,\n \n July 7, 2021\n \n /CNW/ - Foraco International SA (TSX: FAR) (the \"Company\" or \"Foraco\"), a leading global provider of mineral drilling services, announced today the consummation of the debt refinancing (the \"Debt Refinancing\") originally announced on\n \n May 19, 2021\n \n , related to its US\n \n $146.8 million\n \n \n (*)\n \n outstanding bonds raised in 2017 from affiliates of Oaktree Capital Management, L.P. (\"Oaktree\") and Kartesia Securities IV S.A. (\"Kartesia\"), and maturing in\n \n May 2022\n \n .\n \n \n The US\n \n $146.8 million\n \n \n (*)\n \n early redemption of such bonds has been completed by way of a repayment of US\n \n $91.0 million\n \n \n (*)\n \n in cash and the issuance of 9,300,000 ordinary shares of the Company, representing approximately 9.4% of the capital, to the benefit of Oaktree and Kartesia. The cash repayment was financed by a new US\n \n $100 million\n \n senior secured bonds facility granted by Marathon Asset Management LP (\"Marathon\"), maturing in\n \n December 2025\n \n .\n \n \n The Debt Refinancing resulted in a gain before tax for the Company of US\n \n $35.8million\n \n \n (*)\n \n , and a US\n \n $55.8 million\n \n \n (*)\n \n reduction in net debt.\n \n \n The completion of the Debt Refinancing is a significant step forward for Foraco and marks a new era for the Company.\n \n \n \n (*) These figures illustrate the estimated effect of the Debt Refinancing on the Company's financial position after giving effect to the Debt Refinancing as if it had occurred on\n \n June 30, 2021\n \n .\n \n \n \n \n Michael Alexander\n \n , Managing Director in Marathon Asset Management's Capital Soluti...