NEW YORK and TORONTO and
MARSEILLES, France, July 13, 2021 /PRNewswire/ -- Marathon Asset
Management today announced the closing of a $100 million senior secured bonds financing to
Foraco International SA (the "Company" or "Foraco"), a leading
global provider of mineral drilling services. Proceeds from the
financing repaid existing indebtedness and provided 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 (TSX:FAR). The Company
has grown into the 3rd largest global drilling enterprise with
operations in 22 countries across five continents.
Michael Alexander, Managing
Director in Marathon Asset Management's Capital Solutions Group,
commented: "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. 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."
Foraco Co-CEO Daniel Simoncini
commented: "Coupled with the current favourable 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. We are particularly proud to have delivered
value to our shareholders through this transaction, and we renew
our gratitude to our dedicated Foraco teams."
Foraco Co-CEO and CFO Jean-Pierre Charmensat added: "The
consummation of the early redemption of its outstanding bonds is a
significant step forward for Foraco. 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."
About Marathon Asset Management LP
Marathon Asset Management LP is a global credit manager with
$22 billion in assets under
management. The firm was formed in 1998 by Chairman &
CEO Bruce Richards and CIO Louis Hanover and now has 160
employees across offices in New York
City, London and Tokyo. Marathon's core competency
is opportunistic investing in the global corporate, emerging market
and structured credit markets. Its Capital Solutions platform
specializes in designing bespoke private credit transactions to
companies in transition and seeks to invest $50
million to $500 million per
transaction. Marathon provides partnership capital to sponsors and
management teams primarily in the form of senior secured unitranche
loans, junior lien debt, mezzanine debt, convertible bonds and
preferred equity. For additional information, please visit
www.marathonfund.com.
About Foraco
Foraco International SA (TSX:FAR) is a global leading drilling
services company that provides turnkey solutions for mining,
energy, water and infrastructure projects. Supported by its
founding values of integrity, innovation and involvement, Foraco
has grown into the 3rd largest global drilling enterprise with
operations in 22 countries across five continents. For more
information about Foraco, visit www.foraco.com.
Media Contacts
Prosek Partners
Josh Clarkson, Anne Hart
jclarkson@prosek.com
ahart@prosek.com
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SOURCE Marathon Asset Management