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Foraco International announces the early redemption of Marathon Bonds with US$87 million (*) of new debt raised from international banks
Foraco International announces the early redemption of Marathon Bonds with US$87 million (*) of n...
About this update from Foraco International Sa
[{"type":"text","content":"\n \n \n \n Foraco International announces the early redemption of Marathon Bonds with US$87 million (*) of new debt raised from international banks\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 \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n TORONTO\n \n and\n \n MARSEILLE, France\n \n \n ,\n \n \n Nov. 8, 2023\n \n \n /CNW/ - Foraco International SA (TSX: FAR), a leading global provider of mineral drilling services, today announced the early redemption of the outstanding senior secured bonds facility of\n \n $85 million\n \n provided by Marathon Asset Management LP (\"Marathon\"), along with securing new long-term bank financing from Desjardins and Caisse d'Epargne.\n \n \n \n \n \n \n \n \n \n The strong market and the robust operating performance, with a significant operating cash flow, allow Foraco to comprehensively refinance its balance sheet.  To complete this debt refinancing, with an early repayment, Foraco successfully secured approximately\n \n $87 million\n \n in new debt, backed by its two main subsidiaries.\n \n \n This refinancing is a key step in Foraco's journey as it significantly reduces the cost of debt (by approx. 50%) and increases the flexibility for the company thanks to the extended maturity of the debt, a back-ended repayment profile and committed facilities of\n \n C$15 million\n \n from Desjardins.\n \n \n \n \n Tim Bremner\n \n , CEO of Foraco, commented:\n \n \n \n \"This transaction has been concluded in the context of a strong upturn in our business and a positive long-term trend that aligns with the Company's strategic priorities. It underscores our ongoing profitability and reinforces the relevance of our strategic positioning in addressing our customers' needs and the societal challenges associated with energy transition and water management. This refinancing will enable us to significantly improve net income generation and provides us with the opportunity to review our capital allocation.\"\n \n \n \n \n Fabien Sevestre\n \n , CFO of Foraco, added:\n \n \n \n \"The refinancing comes at a time of robust revenue growth and a reco...