Boart Longyear raises $771.4m

Drilling services provider Boart Longyear Ltd has slashed its net debt after completing a $US700 million ($A775.3 million) capital raising.

The company has now reduced net debt by more than 90 per cent to less than $US100 million ($A110.7 million), chief executive Craig Kipp said in a statement on Tuesday.

"With a stronger balance sheet, the company is now well positioned to take full advantage of the opportunities created by the recovery in the resources cycle," Mr Kipp said.

Boart Longyear flagged in May a possible capital raising to reduce debt ahead of expected lower earnings in 2009, as the global financial crisis dampened mining activity.

At the time, it aimed to shave at least $US64 million ($A70.9 million) from its net debt, which stood at $US764 million ($A846.3 million) at the end of December.

Boart Longyear said on Tuesday its remaining debt facilities mature in April 2012.

The company also said it expected to record about $US17 million ($A18.8 million) in pre-tax, one-off, primarily non-cash expenses in the second half of 2009 related to the capital raising, the early retirement of debt and certain floating-to-fixed interest rate obligations.

The raising was finalised after Boart Longyear completed an oversubscribed $US75 million ($A83 million) share purchase program (SPP).

It followed a placement of shares to institutions in August that raised $US478 million ($A529.3 million).

This comprised a $US184 million ($A203.7 million) institutional entitlement offer, a $US101 million ($A111.9 million) unconditional share placement and a $US193 million ($A213.8 million) conditional share placement.

"The SPP resulted in over 10,000 applications to purchase additional shares, comprising over $US118 million ($A130.7 million) in aggregate investor demand," the US-based company said.

"Consistent with its previously outlined intentions, the company has elected to limit the total size of the program to approximately $US75 million ($A83 million)."

Boart Longyear has issued about 308.9 million new ordinary shares under the SPP at an issue price of 27 cents per share.

Shares in Boart Longyear were up half a cent at 28 cents on trading volumes of almost 64 million shares, making it the third most traded stock by volume on Tuesday.