Boart completes debt offer

Drilling services provider to use $US300m offering to pay down loans.

Boart Longyear (BLY) has completed a $US300 million ($321,8 million) secured notes offering and plans to use the proceeds to pay down loans outstanding under its revolving credit facility.

In a statement to the Australian Securities Exchange, the group said its wholly owned subsidiary Boart Longyear Management Pty Ltd has completed the previously announced notes offering to qualified institutional buyers.

The notes will pay interest at a rate of 10% a year, payable on April 1 and October 1 of each year from April 1, 2014 until maturity on October 1, 2018 (see Ian Verrender's Boart gasping for breath).

The notes are secured by a first-priority lien on substantially all of the issuer's and guarantors' tangible and intangible assets, Boart Longyear said.