Boart Longyear to repay loan with share issue

Boart Longyear shareholders have approved the conditional placement of over 850 million shares in a bid to raise US$ 193 million.

The proceeds from the placement, which is due to settle on 28 September, along with the net proceeds of a previous institutional entitlement offer, retail entitlement offer and unconditional placement will be used to repay the company's US$ 585 million loan A, which matures in April 2010.

Boart Longyear intends to offer all eligible shareholders in Australia and New Zealand the opportunity to participate in a share purchase plan (SPP), details of which are yet to be released.