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  • Mining plant and equipment provider Emeco (EHL) is set to raise $149 million to pay off its debts
  • Emeco will raise the money through an underwritten accelerated pro-rata, non-renounceable entitlement offer
  • Under the offer, around 175.5 million shares will be issued at 85 cents per share
  • The funds will pay off 44 per cent of Emeco’s secured notes due for repayment in March 2022
  • That payment will significantly reduce the company’s outstanding secured notes from $442 million to $250 million
  • Meanwhile, the maturity of Emeco’s remaining notes has been extended to 2024
  • After the transaction, Emeco will have $153 million in total available liquidity
  • Emeco shares will be paused until Tuesday, August 25, and last traded for $1.04 per share on August 21

Mining plant and equipment provider Emeco (EHL) is set to raise $149 million to pay off its debts.

The company has entered a trading halt this morning ahead of the raise.

Emeco will raise the money through an underwritten accelerated pro-rata, non-renounceable entitlement offer. Around 175.5 million shares will be issued at 85 cents per share.

The funds will pay off 44 per cent of Emeco’s secured notes due for repayment in March 2022. That payment will significantly reduce the company’s outstanding secured notes from $442 million to $250 million. Meanwhile, the maturity of Emeco’s remaining notes has been extended to 2024.

After the transaction, Emeco will have $153 million in total available liquidity.

Managing Director and CEO Ian Testrow said the capital raise will set Emeco up for future success, especially during the uncertain times surrounding COVID-19.

“Reducing our gross debt and eliminating our 2022 refinancing task means that we can fully focus on running the business and continue our evolution to becoming a leading mining services solutions provider,” he said.

“In FY21 we will continue to diversify our commodity and customer mix, increase our service levels and win long term projects, which will provide a platform for growth in FY22,” he added.

Emeco shares will be paused until Tuesday, August 25, and last traded for $1.04 per share on August 21.

EHL by the numbers
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