ASX_Rating Review_SP - July 2015


16 July 2015

Debt Rating Agency Action Reflects Improvement Following Recapitalisation

Boart Longyear Limited (ASX:BLY) - Standard & Poor's Ratings Services has reviewed the Company's debt ratings and has taken certain rating actions in response to the Company concluding its recapitalisation earlier this year.
Standard & Poor's actions include:

Raising the corporate credit rating to CCC+ from CCC

Raising issue-level ratings on senior secured notes to B from B- and on senior unsecured notes to CCC+ from CCC

Recovery ratings remain unchanged at 1 and 4 for senior secured and unsecured notes, respectively

Ratings outlook is negative

Richard O'Brien, President and Chief Executive Officer of Boart Longyear commented, "We are pleased that Standard & Poor's has acknowledged that our recapitalisation transaction has increased the Company's liquidity and improved our credit outlook. We appreciate the ongoing support of our
valued customers, suppliers, employees and shareholders as we celebrate the 125th anniversary of
Boart Longyear's service to the mining industry".
Standard & Poor's commentary in conjunction with its ratings actions notes, "The upgrade reflects our view that the recapitalization completed in the first quarter of 2015 was successful, and provided the company with cash to finance capital spending and working capital needs while EBITDA generation remains weak as it seeks to navigate through the challenging mining environment. The recapitalization also gives the company covenant relief, since the term loans provided by
Centerbridge Partners L.P. are covenant-lite in nature."
Standard & Poor's also stated, "The negative outlook reflects our view that Boart Longyear's EBITDA will remain low and its leverage very high over the next 12 months, as persistently weak prices for many metals depress investment by mining companies."

About Boart Longyear

Celebrating its 125 year anniversary in 2015, Boart Longyear is the world's leading provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies globally. It also has a substantial presence in aftermarket parts and service, energy, mine de-watering, oil sands
exploration, and production drilling. The Global Drilling Services division operates in over 30 countries for a diverse mining customer base spanning a wide range of commodities, including copper, gold, nickel, zinc, uranium, and other metals and minerals. The Global Products division designs, manufactures and sells drilling equipment, performance tooling, and aftermarket parts and services to customers in over 100 countries. Boart Longyear is headquartered in Salt Lake City, Utah, USA, and listed on the Australian Securities Exchange in Sydney, Australia. More information about Boart Longyear can be found at www.boartlongyear.com. To get Boart Longyear news direct, visit http://www.boartlongyear.com/rssfeed.

Investor Relations: Media: Jay Clement David Symons

Vice President, Investor Relations & Treasurer Cato Counsel
Australia: (08) 8375 8300 Sydney: (02) 8306 4244
USA: +1 801 401 3712 Mobile: 0410 559 184 ir@boartlongyear.comdavid@catocounsel.com.au

distributed by