NEW YORK, April 5, 2017 – Milbank, Tweed, Hadley & McCloy LLP successfully represented Boart Longyear, a Utah-based global drilling services company, in reaching a binding recapitalization agreement with its key creditors who collectively represent over 75% of its secured lenders and 90% of its unsecured lenders (“Recapitalization”).
The Recapitalization will reduce Boart Longyear’s debt and interest costs, improve liquidity and extend debt maturities, which will provide the company with a more sustainable capital structure and is critical to supporting its operations and future growth. In conjunction with the Recapitalization, Boart Longyear has also reached an agreement with lenders for an incremental, short-term US$15 million loan facility to provide additional working capital to support the company until the Recapitalization is completed. Subject to shareholder and other approvals, the Recapitalization is expected to be completed in June 2017.
Boart Longyear will seek to implement the Recapitalization primarily by two Australian creditors’ schemes of arrangement and seek recognition by a chapter 15 filing in the United States to implement the above equity arrangements and bind all holders of the company’s Senior Secured Notes and Senior Unsecured Notes to the proposed changes to the terms of those debt instruments.
The Milbank team was led by Financial Restructuring partners Dennis Dunne and Evan Fleck. Also advising Boart Longyear were Alternative Investments partner Albert Pisa, Capital Markets partner Paul Denaro, Tax partner Russell Kestenbaum, Financial Restructuring special counsel Dennis O’Donnell, Tax special counsel Max Goodman, Financial Restructuring associate Justin Amirian, Alternative Investments associates Maya Grant and Jeff Meyers, and Capital Markets associates Alexander Gefter and Jonathon Jackson.
