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BLY - Boart Longyear Group

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...still no news... and bly keeps going up today (25% at the moment)...

yep no news is good news alright.
 
Sold these guys a few days ago. Exited on decent profit. Cap raising these guys will need should be mammoth. JMO

DYOR
 
Well picked GumbyL, Had my sell order a bit high and missed the boat...for now anyway. Are they cap raising?
 
ann out this morning regarding debt refinancing, progress being made slowly, with end of 2009 still the hoped-for date of completion

cheers
 
..."“Boart’s heading in the right direction,” said Craig Stranger, an analyst at Austock Securities Ltd. in Melbourne. “It looks like the banks are supportive of getting Boart through a pretty tough 2009.” Stranger upgraded his recommendation to “hold” from “sell” and raised the price target to 30 Australian cents from 20 cents. "......

http://www.bloomberg.com/apps/news?pid=20601081&sid=aMB.aaX1u_P4

 
Boart shares soar on refinance deal

Boart shares soar on refinance deal

Mining driller Boart Longyear says it has agreed with a syndicate of banks to refinance the company's credit facilities at a lower level than the current $US850 million ($1.1 billion).

But the conditions imposed on the deal make the chances of it succeeding unpredictable, Boart Longyear said in a statement this morning.

"Given such risks and uncertainties, the company is not able to give any assurances as to when, or if, a refinancing and extension will be consummated.''

Despite the uncertainties, Boart shares jumped 1.5 cents, or 6.3 per cent, to 25.5 cents.

"Boart's heading in the right direction,'' said Craig Stranger, an analyst at Austock Securities. "It looks like the banks are supportive of getting Boart through a pretty tough 2009.''


Mr Stranger upgraded his recommendation to "hold'' from "sell'' and raised the price target to 30 cents from 20 cents.

Boart, which has cut its workforce to decrease costs, wants to reduce debt to less than $US700 million by the end of the year from $US764 million at the start after the worst financial crisis since the Great Depression damped demand for its services.


Boart has $US585 million of debt maturing in April 2010, according to previously released statements from the company.

Boart said it had authorised seven banks to act as joint mandated lead arrangers and bookrunners (JMLABs) to refinance the facilities "in a reduced amount''.

The facilities currently total $US850 million.

The banks are Bank of America, National Australia Bank, Royal Bank of Scotland, BNP Paribas, Commonwealth Bank of Australia, HSBC Bank Australia, and ANZ.

"While the execution of the mandate and term sheet establishes an agreed refinancing framework, completion remains subject to a number of requirements, conditions and approvals,'' Boart Longyear said.

These include the sale of equity securities and/or junior debt obligations and credit approval by each of the JMLABs as well as the other participants in the bank syndicate.

Boart Longyear said it wanted to complete the refinancing or extension of the facilities before the end of 2009.

http://www.businessday.com.au/business/boart-shares-soar-on-refinance-deal-20090710-dfa4.html

http://www.businessspectator.com.au...facilit-pd20090710-TSUJF?opendocument&src=rss
 
Re: Boart shares soar on refinance deal

trader10 said:
Boart shares soar on refinance deal...
Click to expand...

I missed the "soar" bit in the article. Headlines can be so deceptive!
Defn Soar ...To climb swiftly or powerfully.

BLY was well over 30c less than a month ago, on no news.
Will they soar back to $2 that they were less than 12 months ago??

Hope they are right I hold these! Not a $2 I sold those in the nick of time by GOOD LUCK (I needed some cash at the time) and bought back in at 22.5c only to see them slide down to around 7c.
 
BLY

Broken upwards from a decending triangle - these are usually reversals in an uptrend
Broke on strong vol, but closed lower than opened, a day of indecision, as for soaring !!
 

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FIN REVIEW weekend

It's definetely a buy IMHO...... medium/long term she should definetely soar.....


..."By all reports,investment banks have been banging on the door in recent weeks amid speculation that the company is looking to cut ties with financial adviser Macquarie. The speculation proved true on Friday, with Merril Lynch and RBS appointed as Boart's new financial advisers"......



...."The company announced that seven of its banks had agreed to the terms of the refinancing and extension of existing credit facilities, including reducing the amount and amending the covenants in place.".....



..." Among the initiatives expected before the refinancing is put to bed is a large equity raising - expected in the $200 - $350 million range, possibly an accelerated pro-rata rights issue".....

http://www.afr.com/home/
 
Re: FIN REVIEW weekend

trader10 said:
It's definetely a buy IMHO...... medium/long term she should definetely soar.....
Click to expand...

Thanks for the snippets Trader10, I agree with you and hope for the best.
BLY, Big company, lots of assets, if it can manage its debt, it should prove a good investment. Good companies come out as great companies after managing difficult times and debt such as these.
They certainly have their challenges, and still a looong way to go I suspect.
 
BLY - good company ?


It is a purely SPECULATIVE stock now.
The management does not know how to run the company: they allowed to get into such a massive debt having such a strong engineering staff. The way they trade BLY shares (vide president's Feb08 5m sale on press-boosted profit announcements) shows that they do not care about the shareholders but about themselves only.
I spoke with an engineer who deals with them professionally and he said that they waste a lot of money in poor tools / facilities management.

They could have been earning 3-4 times more if they knew how to cut costs / wastage. But the only way they know how to cut costs is ... firing staff. Truly you need full board of MBA guys to do that ...
 
Re: BLY - good company ?

ozbecool said:
It is a purely SPECULATIVE stock now.
...
Click to expand...

Cheers Ozbecool. Thanks for the insight. Did the rest of the board flog their shares at the same time? Feb 08 was not an optimum time looking at their prices around that time. (But certainly massively better than the price 6 months later!!)

Well their opportunity to become a notable company is very much before them. Need to keep a closer look on these guys.

The board members have to announce to the market when they buy and sell, dont they? I admit not paying overly too much attention to some of the garbled announcements, and is this is the only (best) way to determine the boards activity with respect to their holding? Forgive my dumb questions.
 
Re: BLY - good company ?

It is a purely SPECULATIVE stock now...
Click to expand...

Yeah expect it will go to 50c and beyond or fail. If we get thru this reporting season OK I'm punting on the former based on exploration resuming to comfortable levels before these guys refinance. EPS in '08 10.4c and in '07 5.4c so the stock has a way to go even if diluted from the capital raising mix.
 
What's happening with BLY. seems its not moving at all. Its been sitting at around $24 all through the rally
 
Theres was some movement I see, 18% up at end of day 100MM vol, is this because the market was a little upbeat perhaps? (I wasnt watching on Friday). Maybe there is some news expected...
Any ideas?
 
Expect bigger funds have started getting back into BLY. The general mood that we're over the worse of the GFC and increased mining activities should convert to higher revenue and less resistance to refinancing.

They earn good money, as long as they are financial. While the current mood remains BLY should outperform the market given the beating they took last year. Beware the double dip though. For what it's worth I think the market is just moving to a more sensible level after re-evaluating the doomsday assessments. Holding at average 22.5c for the long haul.
 
Ann today UBS increased their stake by 1.1% to just over 10% in buying 16.5m shares lately. Volumes have been strong and more buyers than sellers for a while now. Stock up 40% since July 29. Wonder whether it's more confidence in mining activity recovery or impending news on finance restructuring, probably a bit of both. It's all good and holding for the long haul at 22.5c
 
Thanks pan, that might explain why they've held up today with most miners taking a breather. Be interesting how and when they will refinance. The article refers to salad days in 2007 of SP $2.71 - don't expect to see those for a very long while, if ever again. However I'm holding even after recent gains to 39.5c on the basis mining will continue to recover along with global demand. I don't have the time or temperament be a trader
 
Has anybody here ever thought about the debts of BLY? If so, did you still buy? If so, have you gotten worried?
 
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