Ausdrill announces $550m in bank financing

Mining services group Ausdrill has refinanced its debts, announcing today it had signed a new three-year, $550 million dual currency facility with a syndicate of banks.

Ausdrill said the new arrangement would allow it to refinance its existing $150 million revolver, refinance around $30 million of asset finance facilities and fund the acquisition of Best Tractor Parts.

Chief financial officer Jose Martins said the new deal would also underpin the company’s growth and ongoing funding requirements in both Australia and Africa.

“Ausdrill is delighted with the outcome,” Mr Martins said. “We received strong support for our refinancing which we have concluded with our preferred bank group.”

“We have achieved precisely what we set out to do, which was to transition to a flexible corporate borrowing platform consistent with the strength of our credit standing and implement required levels of liquidity, whilst maintaining a relatively conservative approach to debt.

“This new debt arrangement will provide flexibility to assist in continuing to deliver our strategy of being a leading provider of integrated mining services in Australia and Africa.”

Ausdrill was advised by Grant Samuel in connection to the refinancing.

At 10:30AM, WST, Ausdrill stocks were up 3.2 per cent, trading at $2.89.