Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas
Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas
Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas
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Benefits of the Recapitalisation Plan<br />
• Strengthens balance sheet<br />
– Recapitalisation will reduce <strong>AJ</strong>L’s pro-forma net debt position<br />
• Net debt expected to be reduced to $69.3mm<br />
• No requirement to draw down under Athena facility<br />
• Interest expense significantly reduced<br />
– Improved overall cash <strong>and</strong> working capital position<br />
• Provides financial flexibility<br />
– Current outst<strong>and</strong>ing short term facilities paid in full<br />
– Provides ability for <strong>AJ</strong>L to seek more favourable terms on remaining debt facilities<br />
• Provides operational flexibility<br />
– <strong>AJ</strong>L not expected to be required to contribute additional equity to Cuadrilla or Bowl<strong>and</strong> until after the end of calendar year 2014<br />
– Enables <strong>AJ</strong>L to pursue current <strong>and</strong> future growth opportunities<br />
– Will increase <strong>AJ</strong>L’s attractiveness to customers, enhancing <strong>AJ</strong>L’s ability to win future work in Engineering <strong>and</strong> Construction (E&C)<br />
activities<br />
– Improved balance sheet is expected to lead to an increased capability for <strong>AJ</strong>L to provide bonds in support of project awards in the E&C<br />
<strong>and</strong> Drilling Divisions<br />
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