Marathon Asset Management closed a $100 million senior secured bonds financing for Foraco International, a global provider of mineral drilling services.
Foraco used the proceeds from the financing to repay existing indebtedness and to provide additional liquidity and growth capital as the company executes on its long-term business plan. The transaction also enabled Foraco to materially reduce its net debt outstanding.
Founded in 1997 and headquartered in Marseille, France, Foraco provides turnkey solutions for mining, energy, water and infrastructure projects, and is listed on the Toronto Stock Exchange. The company has operations in 22 countries across five continents.
“We are confident that Foraco is well positioned to deliver critical drilling services to its customers and capitalize on many exciting growth prospects in the years to come across a number of different commodities,” Michael Alexander, managing director in Marathon Asset Management’s capital solutions group, said. “Foraco’s business showed its resilience during the COVID downturn, and we believe it is now well positioned for growth. Marathon welcomes this partnership with Foraco and its management team.”
“Coupled with the current favorable market conditions, our improved capital structure gives us ample capacity to pursue accretive growth strategies and continue building upon the high-quality service offering which we have constantly improved over the past decades,” Daniel Simoncini, co-CEO of Foraco International, said. “We are particularly proud to have delivered value to our shareholders through this transaction, and we renew our gratitude to our dedicated Foraco teams.”
“The consummation of the early redemption of its outstanding bonds is a significant step forward for Foraco,” Jean-Pierre Charmensat, co-CEO and CFO of Foraco International, said. “The transaction is accretive for the company’s shareholders. It is the culmination of meticulous and focused hard work over the past few years to reshape and de-risk the company’s balance sheet and enhance equity value. As previously mentioned, the company’s debt profile will be significantly improved, financial constraints will be eased and debt maturities will be extended through the end of 2025.”
