On October 23, Boart Longyear announced to the ASX that its largest shareholder, Centerbridge Partners, L.P., agreed to increase its investment in the company through a comprehensive recapitalization plan. The agreement, parts of which are subject to approval by Boart Longyear’s shareholders, is designed to improve the company’s debt structure and liquidity. This will give Boart Longyear the liquidity to weather the challenges of the current depressed markets for its drilling services and products and the financial strength to allow more time for those markets to recover, Boart Longyear said in a release.

This partnership with Centerbridge, an experienced investment firm and the Company’s largest shareholder, will ensure that the Boart Longyear franchise, which will have been operating 125 years next year, remains fundamentally strong and valuable.” Mr. Richard O’Brien, President and Chief Executive Officer of Boart Longyear October 23rd, 2014 ”

The agreement with Centerbridge marks the successful completion of a strategic review process Boart Longyear’s Board of Directors and executive management team initiated in February. The Boart Longyear’s goal was to create a more sustainable capital structure. Boart Longyear commenced the strategic review as they believed the status quo was unsustainable and the Company required financial flexibility to withstanding current operating conditions until the drilling market returns.

Centerbridge Partners is an excellent strategic fit for Boart Longyear:?

• Centerbridge is dedicated to partnering with strong management teams across targeted industry sectors to help companies achieve their operating and financial objectives.?
• Centerbridge brings significant capital and operational resources to bear for the benefit of all the Company’s stakeholders.
• Centerbridge recognizes Boart Longyear as the world’s leading drilling services and products business, and that the transaction will provide the Company the necessary liquidity to weather the challenges of the current depressed markets for our drilling services and products and the financial strength to allow more time for those markets to recover.?
• The recapitalization reflects a partnership between the Boart Longyear and Centerbridge and is not a change of control transaction.