Centrebridge may recapitalise Boart Longyear

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Centrebridge is believed to be preparing a second recapitalisation of Boart Longyear, after it recently drafted in advisory firm Houlihan Lokey, sources say.
Boart Longyear publicly announced the appointment of the US-based bank to evaluate its capital structure options while delivering its half-year results.
It is now expected Centrebridge will inject further equity into the business.
It is understood that Centrebridge is not working with an adviser, but an appointment of Moelis could be on the cards, given it worked with the boutique on its previous recapitalisation deal.
Boart Longyear is a global mining exploration drilling service provider that is headquartered in Salt Lake City in the US, but is listed on the Australian Securities Exchange.
It reported a 52 per cent lift in its net profit to $79m for the six months to June, despite its revenue falling 20 per cent to $770m. Centrebridge took part in a $400m recapitalisation deal with Boart Longyear in 2014, which involved $US225m in new loan financing and about $US111m in equity capital.
Other components to the transaction included $US16m debt equalisation and an equity-funded share repurchase plan, with the deal leaving Centrebridge with a stake of just under 50 per cent of the business as well as board representation.