Moody’s might lift Barminco

Moody's Investors Service said it placed on review for upgrade the B1 corporate family rating of Barminco Holdings Pty Ltd., Barminco Finance Pty. Ltd.'s B1 senior secured notes rating and the Ba3 senior secured rating on its revolving credit facility.

The agency said its review follows the announcement that Ausdrill Ltd. has reached an agreement to acquire 100% of the share capital of Barminco Holdings for a total consideration of around A$697 million.

At the same time, Ausdrill has announced that it will assume and leave in place Barminco's $350 million senior secured notes maturing in May 2022, as well as its A$100 million senior secured revolving credit facility which remained largely undrawn at the end of June.

If the proposed transaction is successfully completed, Barminco and its subsidiaries will remain a ring-fenced group under Ausdrill ownership and will continue to have access to its 50% share of earnings from African Underground Mining Services, a joint venture with Ausdrill.

Moody's said its review will focus on the progress and completion of the proposed transaction.

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