Major Drilling announces the acquisition of Bradley Group, a $70 million public equity offering and new enhanced credit facilities

About this update from Major Drilling Group International Inc.

[{"type":"text","content":"\n\n\n\n\n\nTHIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE\n SERVICES OR FOR DISSEMINATION IN THE UNITED STATES\n\n\nMONCTON, NB, Sept. 8, 2011 /CNW/ - Major Drilling Group International\n Inc. (\"Major Drilling\" or the \"Corporation\") (TSX: MDI) is pleased to announce that it has entered into an\n agreement to acquire all of the issued and outstanding shares of\n Bradley Group Limited (\"Bradley Group\") (the \"Acquisition\"), a family-owned drilling company based in Rouyn Noranda, Quebec\n (Canada), for an aggregate purchase price of $80 million (the \"Purchase Price\"), subject to adjustments and subject to certain customary closing\n conditions. $72 million of the Purchase Price will be payable in cash\n at the closing of the Acquisition with the balance of $8 million being\n subject to a hold-back over 3 years. In addition, at the closing of the\n Acquisition, the Corporation expects to repay a portion of the\n indebtedness of Bradley Group under its credit facilities in the amount\n of approximately $10 million, and the remaining portion of such\n indebtedness in the amount of approximately $5 million will effectively be assumed by the Corporation. The Acquisition and\n other related transaction costs are being financed through a $70\n million \"bought deal\" public offering of subscription receipts and new\n and extended credit facilities of $100 million in aggregate.\n\n\n\"The acquisition of Bradley Group is a unique opportunity to further\n Major Drilling's corporate strategy of focusing on specialized\n drilling, expanding our geographic footprint in areas of high growth\n and of maintaining a balance in our mix of drilling services. The\n operations of both companies are very complimentary in terms of\n geography, personnel and strategies\" said Francis McGuire, President CEO of Major Drilling.\n\n\nTransaction Highlights\n\n\nFurthers Major Drilling's corporate strategy of focusing on specialized\n drilling.\n\n\nAdds 124 rigs and 841 employees to Major Drilling's base of 571 rigs and\n 4,362 employees.\n\n\nAdds new geographic footprints in Northern Québec and Northern Ontario\n where Major Drilling is less active and in the Philippines where Major\n Drilling does not have a presence.\n\n\nIncreases Major Drilling's presence in Colombia, Mexico and Suriname\n which are expected to be are...

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