Boart Longyear entered into a $20 million credit facility with Centerbridge Partners, its largest equity and debt investor.

The facility has been established to provide additional financial resources to support ongoing restructuring discussions with the company’s lenders as well as to provide additional working capital in Q1/17, when the company’s working capital needs are typically at their seasonal peak due to the start-up of drilling projects globally.

The facility is subject to certain collateral requirements that must be satisfied before it can be drawn. The new facility is in support of the company’s discussions with Centerbridge and other lenders to the company on modifications to the amount of indebtedness and the terms of the indebtedness that the company currently has outstanding.

The $20 million aggregate principal amount is in the form of a delayed draw term loan facility and is secured by $50 million in the form of drilling rigs in the U.S., Canada and Australia. The facility matures on December 31, 2020.

The company and Centerbridge also modified certain terms of term loans A and B, which were entered into as part of the Centerbridge-led recapitalization completed in January 2015. The modified terms include a new maturity date of January 3, 2021, a 12% per annum payable in kind interest rate to an option of the 12% in kind or 10% payable in cash and a requirement that the company must maintain at least 90% of all its U.S., Canadian and Australian tangible assets.

Global mineral exploration company Boart Longyear is headquartered in Salt Lake City.