27/02/2014 - 15:16

Emeco proposes $US360m notes offer

27/02/2014 - 15:16

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Emeco proposes $US360m notes offer

Earthmoving and mining equipment supplier Emeco Holdings is looking to shore up its balance sheet in the wake of a $180 million half-year loss, announcing a plan to raise up to $US360 million through the offering of senior secured notes.

Emeco said the notes would be offered to institutional buyers in the United States by its subsidiary Emeco Pty Ltd.

The company said the proceeds would be used to pay down debts under its US private placement notes and Australian bank facilities, and to boost general working capital.

At the same time, Emeco said it was seeking to establish a multi-currency, three-year revolving credit facility for up to $75 million, for general corporate purposes.

The moves come after Emeco lodged a 49 per cent drop in revenue to $126.4 million for the six months to December 31, with its $180 million net loss including $158 million in impairment charges.

At close of trade today, Emeco stocks were down 8.3 per cent, at 22 cents. 

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