A UBS-led first lien has been upsized to $325 million from $300 million within a $500 million facility to back Advent International's $545 million acquisition of Boart Longyear Group, a part of Anglo Ferrous Metals, from Anglo American. With the increase, the second lien will be reduced from $125 million to $100 million. Pricing on the first lien will be flexed down to LIBOR plus 2 1/2% from the initial 2 3/4%. Pricing on the second lien will remain unchanged at LIBOR plus 7%. The deal also includes a $75 million revolver priced at LIBOR plus 2 3/4%.
Boart provides services and products to the natural resource industry. Dave McKenna, a partner at Advent International, previously told LMW that the demand for raw materials that Boart produces has been increasing because of demand in areas such as China and India. The decision to buy the company was based on the growing market and Advent's belief that there is a built in business platform that can be further diversified (LMW, 6/10).
McKenna referred calls for this story to UBS. One banker said the deal was well received because the dynamics surrounding the mining industry has led to a lot more exploration and development in the field, also citing increased demand in China and India. He said commodities are seeing the benefit of increased revenues and cash flow.