Business
Foraco International announces the completion of its Financial Reorganization
Foraco International announces the completion of its Financial Reorganization Cana...
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\n\nForaco International announces the completion of its Financial Reorganization\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\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, ON and MARSEILLE, France, May 12, 2017\n\n\n\nTORONTO, ON and MARSEILLE, France, May 12, 2017 /CNW/ - Foraco International SA (TSX:FAR) (the \"Company\" or \"Foraco\"), a leading global provider of mineral drilling services, today reported that it has completed the reorganization of its financing, which was announced on March 2, 2017. \n\n\"We are pleased to report that we have finalized with our existing lenders, as well as with new lenders, the reorganization of our financing which was announced on March 2, 2017. New financing is provided under an agreement with new lenders, Kartesia Credit Opportunities (\"Kartesia\") and funds managed by Oaktree Capital Management, L.P. (\"Oaktree\"). The agreement provides for an injection of €23.0 million (US$25.1 million) in new money in the form of secured bonds with a 5-year term, including an €18.0 million (US$19.6 million) tranche in immediately available funds. The agreement with our existing lenders notably provides for the postponement of the installments on most of our existing long-term financing with the issuance of 5-year term subordinated bonds to be held by Kartesia and Oaktree for an amount of €81.5 million (US$88.8 million). This agreement with our existing lenders also provides for new bank guarantee lines representing €12.7 million (US$13.8 million). No equity dilutive instruments are issued as part of this agreement. Lazard Frères, Weil Gotshal, and BDGS assisted the Company in this transaction. We have therefore laid the foundation for the long term, so that we can benefit from the recovery in the mining industry while protecting our shareholders. With this agreement, we can now fully concentrate on our customers and operations\".\n\nAbout Foraco International SAForaco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mini...