Firms: King & Wood Mallesons (Ausdrill Ltd); Allens (lenders)
Deal: Establishment of a three-year, $550 million dual currency debt facility with a syndicate of commercial and investment banks
Area: Corporate finance
Value: $550 million
Key players: The KWM team was led by senior associate Nathan Collins and partner Nicholas Creed
Deal significance: This debt arrangement will allow Ausdrill to refinance its existing $150 million revolving line of credit, refinance around $30 million of asset finance facilities and fund its acquisition of Best Tractor Parts Group, a supplier of mining equipment parts, sales and rentals. By entering into a flexible corporate borrowing platform, Ausdrill will be in an ideal position to meet its ongoing funding requirements in both Australia and Africa, with a healthy level of undrawn liquidity in the pipeline to support future expansion plans.
“The facility sets the standard for flexible funding structures and it will enable Ausdrill to pursue its strategic growth strategy safe in the knowledge that the group will have sufficient liquidity while adopting a conservative approach to its debt funding,” said Collins.
Based in WA, Ausdrill is a diversified mining and services company with operations in Australia, the UK and Africa. The company provides services in mining, drill and blast, exploration, procurement and logistics, manufacturing and telecommunications and last year achieved ASX market capitalisation of $1 billion.