Black Diamond Group Limited Closes Private Placement of Cdn. $40 Million 4.58% Senior Secured Notes Due 2022
CALGARY, ALBERTA--(Marketwired - July 3, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of modular accommodation and energy services in North America and Australia, is pleased to announce that it has closed a private placement of long-term debt in the form of senior secured notes.
The Company, through its indirect wholly-owned subsidiary, Black Diamond Limited Partnership, issued Cdn. $40 million aggregate principal amount of senior secured notes to The Prudential Insurance Company of America, Prudential Retirement Insurance and Annuity Company and Pruco Life Insurance Company. The notes have an interest rate of 4.58% and mature on July 3, 2022. Amortizing principal repayments of Cdn. $13.3 million are due under the notes on July 3 of 2020, 2021 and 2022. The notes are secured and rank equally with the Company's senior credit facilities and the Cdn. $62 million aggregate principal amount of senior secured notes of the Company that were issued to The Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity Company on July 7, 2011.
Proceeds from the offering will be used to repay a portion of outstanding debt under the Company's senior credit facilities and for ongoing capital expenditures and general corporate purposes.
The notes have not been registered in the United States under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act.
About Black Diamond
Founded in 2003, Black Diamond Group Limited is a provider of remote workforce accommodations, modular space solutions and oilfield products and services in Canada, the United States and Australia. With its corporate head office located in Calgary, Alberta, Black Diamond provides its products and services to a full spectrum of industries including oil, natural gas, mining, power, construction, engineering, military, government and education.
Through its direct and indirect wholly-owned subsidiaries and through its approximate 50% equity participation in certain aboriginal limited partnerships, Black Diamond operates four complementary business units comprised of Black Diamond Structures, Black Diamond Logistics, Black Diamond Energy Services and Black Diamond International.
Black Diamond Structures rents and sells remote workforce housing and modular workspace solutions and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; Black Diamond Energy Services rents and sells a complement of oilfield equipment and services; and Black Diamond International rents and sells remote workforce housing and modular workspace solutions and provides associated services outside of North America.
Black Diamond operates its four complementary business units in 17 strategic locations across Canada, the United States and Australia.
Certain information in this news release contains forward-looking statements including, without limitation, the anticipated use of proceeds of the senior secured note offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the risk that Black Diamond will expend the proceeds of the senior secured note offering in a manner different than that indicated. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
President and Chief Executive Officer
(403) 264-9281 (FAX)
Black Diamond Group Limited
Executive Vice President and Chief Financial Officer
(403) 264-9281 (FAX)