24/09/2015 - 13:35

Imdex cancels placement, signs funding deal

24/09/2015 - 13:35

Bookmark

Save articles for future reference.

Balcatta-based drilling services company Imdex has lined up a new debt funding deal after cancelling a $21.5 million placement just hours before today’s shareholders meeting.

Balcatta-based drilling services company Imdex has lined up a new debt funding deal after cancelling a $21.5 million placement just hours before today’s shareholders meeting.

In a statement today, Imdex said it had entered into a binding agreement with fund groups managed by Sankaty Advisors for a $54 million facility, which will transfer the company’s debt owed to Westpac and HSBC.

Sankaty is an independently managed affiliate of Bain Capital.

As a result, Imdex cancelled the second tranche of a $28 million placement, which it was going to use to meet a payment deadline on September 30.

About $6.5 million had already been raised from the first tranche of the placement last month, but a general meeting was scheduled for today for shareholders to vote on the proposed second tranche, which was expected to raise a further $21.5 million.

The meeting was also cancelled.

“The new facility will replace an existing facility and provide additional capacity for financing costs, working capital and general corporate and ancillary purposes,” Imdex said in a statement.

Imdex chairman Ross Kelly said the board had carefully considered all of its options and was confident that it was the best decision for existing shareholders, while satisfying the banks’ debt reduction requirements.

“Strengthening our balance sheet remains a priority and this debt solution enables us to pursue the orderly sale of our non-core oil and gas assets and achieve full value for the company,” Mr Kelly said.

Managing director Bernie Ridgeway said the facility provided the company with time to dispose of non-core assets to reduce or eliminate debt and achieve a long-term growth strategy.

“We have more flexible covenants and greater headroom to implement our differentiated suite of technologies, particularly in the global minerals market,” Mr Ridgeway said.

Imdex shares were 9.2 per cent higher to 20.2 cents at 1:30pm.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options