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Boart Longyear advised on debt-for-equity swap
Gilbert + Tobin and Clifford Chance have advised on a transaction that saw the successful restructure of ASX-listed giant Boart Longyear Limited.
Emma Musgrave
Firms: Gilbert + Tobin (Boart Longyear); Clifford Chance (Boart Longyear).
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Deal: An ad hoc group of lenders to Boart Longyear have been advised on its debt-for-equity swap transaction under which debt and accrued interest owed by the group and its subsidiaries was cancelled in exchange for equity.
Value: $1.1 billion.
Area: Restructuring.
Key players: The Gilbert + Tobin team was led by Dominic Emmett, with assistance from lawyer Peter Madden.
The Clifford Chance team was led by partner David Clee, with assistance from partner Elizabeth Hill, senior associate Cameron Reeves, and associate Michael Fitzpatrick.
Deal significance: As per a statement provided by Gilbert + Tobin, this complex restructuring involved two inter-dependent creditor schemes of arrangement to effect a debt-for-equity swap of approximately $1.1 billion of debt into 98.5 per cent of the equity in the recapitalised group as well as a member scheme of arrangement to transfer Boart Longyear’s corporate domicile from Australia to Canada.
The transaction also involved seeking Chapter 15 recognition in the United States for the schemes and the implementation of an exit finance facility for the group, the firm said.
Commenting on behalf of Clifford Chance, lead partner David Clee said: “Boart Longyear’s multi-jurisdictional restructuring transaction was highly complex and transformational for Boart Longyear. It was a pleasure to advise our US-based financial investor clients on the transaction.”
