Mining services company Emeco Holdings has sought $149 million from investors to pay down its debt, as well as extend its revolving credit facility.
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Mining services company Emeco Holdings has sought $149 million from investors to pay down its debt, as well as extend its revolving credit facility.
Mining services company Emeco Holdings has sought $149 million from investors to pay down its debt, as well as extend its revolving credit facility.
The Osborne Park-based company, which launched a one-for-2.10 underwritten rights issue, said it would repay $142 million of its March 2022 secured notes and extend remaining notes along with its revolving credit facility until fiscal 2024.
Upon doing so, Emeco said it would save $19 million in cash interest per year.
The company will also have total available liquidity of $153 million.
Managing director Ian Testrow said the initiatives would support Emeco as it navigated an uncertain global macroeconomic environment impacted by COVID-19.
“In FY21 we will continue to diversify our commodity and customer mix [and] increase our service levels with long-term projects, which will provide a platform for growth in FY22,” he said.
Emeco said it had received binding pre-commitments from major shareholders including Black Diamond Group to exchange $US180 million in existing notes for $US180 million in new notes ($A250 million).
Emeco will issue around 175.5 million shares priced at 85 cents each, representing a 17.9 per cent discount to its last traded price of $1.035 on Friday.
The offer is being jointly-managed and underwritten by Goldman Sachs and Macquarie Capital, with Hogan Lovells acting as legal adviser.
Emeco announced a trading halt this morning, expected to remain until tomorrow.
Rank | Company | Revenue | |
---|---|---|---|
9th | ![]() | Seven West Media | $1,487.4m |
11th | ![]() | Emeco Holdings | $879.0m |
13th | ![]() | Australian Finance Group | $823.2m |
14th | ![]() | SRG Global | $811.8m |