Boart Longyear and majority shareholder Advent International are working with UBS to recapitalize the company by amending and restating existing credit facilities and increasing Boart's first-lien term loan by $175 million to $500 million and raising an additional $75 million second-lien term loan. Price talk is LIBOR plus 3% on the first-lien term loan and LIBOR plus 7% on the second-lien term loan.
Boart Longyear makes and supplies services, systems and products to the natural resources industry and the construction and quarrying industries. In July, UBS increased the first lien Boart had taken out in June to back Advent's $545 million acquisition of Boart Longyear, a part of Anglo Ferrous Metals, from Anglo American. The first lien was upsized to $325 million from $300 million and the second lien was reduced from $125 million to $100 million. Pricing on the second lien remained unchanged at LIBOR plus 7%, but pricing on the first lien was flexed down to LIBOR plus 2 1/2% from the initial LIBOR plus 2 3/4%. The deal also includes a $75 million revolver priced at LIBOR plus 2 3/4% (LMW, 7/18).
Dave McKenna, a partner at the private-equity group, referred calls to UBS, where a banker declined comment.