Foraco International (TSX: FAR) announces successful negotiations with banking partners
TORONTO and MARSEILLE, France, Feb. 12, 2015 /CNW/ - Foraco International SA ("Foraco" or the "Company") is pleased to announce the successful closing of its negotiations with its lenders in France. An agreement with a group of eight lenders representing all of the Company's and its French subsidiaries' debts, and approximately 80% of the consolidated financial debts, was executed and signed on February 12, 2015.
"As announced in the 2014 Third Quarter Results Press Release and subsequent communication, this agreement adapts our financial structure to better match our future cash flow generation in an environment which remains uncertain for drilling companies," commented Jean-Pierre Charmensat, co-CEO and Chief Financial Officer. "This agreement principally focuses on the period until Q4 2016, and primarily consists of securing the roll-over of our short-term credit facilities, securing bank guarantees lines, and postponing installments due in connection with our long term debts by 24 months through increasing the duration of these debts. As part of these negotiations the Company accepted a moderate increase in margins on short term loans."
"This agreement complements the positive impacts of the company-wide cost cutting action plan across operations carried out since 2013," said Daniel Simoncini, Chairman and co-CEO of Foraco. "We are pleased to report to our Shareholders that no dilutive instruments or equivalents were issued. However, as a cash preservation measure, the Company committed not to pay dividends before October 31, 2016. This development is in line with our constant aim to anticipate future events and adapt to the uncertainty and volatility that the mining industry faces today. We believe that the Company is in a good position to benefit from positive developments in the mining industry, as and when they occur."
About Foraco International SA
Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 23 countries across five continents. For more information about Foraco, visit www.foraco.com.
SOURCE Foraco International SA
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