Boart Longyear plans to raise approximately $756 million ($US635 million) by way of a fully underwritten equity raising. The offer will be conducted via three tranches comprising a $US341 million 1-for-1 accelerated non-renounceable pro-rata entitlement share offer; a $US101 million unconditional share placement and a $US193 million share placement, to be voted on by shareholders.

Assuming the conditional placement is approved, Boart Longyear will have raised sufficient capital to repay its existing Term Loan A on or before April 2010 which will remove its near term refinancing issue..

Boart Longyear listed in April 2007 with a market capitalisation of $2.45 billion which peaked in October 2007 at $4.0 billion. Its market capitalisation hit a low of $100 million in March this year and as recently as July had climbed to only $375 million. Its market capitalisation on the Friday before the offer was launched had climbed to $660 million.

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Commentary:

"This is a very significant transaction in the history of BLY and presented a number of challenges in successfully raising an amount to pay down BLY's near term debt facility which exceeded BLY's market capitalisation and when BLY's register is comprised of only approximately 50% institutions. It was a privilege to be able to provide critical support to BLY in these circumstances," commented corporate partner Sarah Dulhunty.