Mr. Tim Bremner reports

FORACO INTERNATIONAL ANNOUNCES THE EARLY REDEMPTION OF MARATHON BONDS WITH US$87 MILLION (*) OF NEW DEBT RAISED FROM INTERNATIONAL BANKS

Foraco International SA has arranged the early redemption of the outstanding senior secured bonds facility of $85-million provided by Marathon Asset Management LP, and has secured new long-term bank financing from Desjardins and Caisse d'Epargne.

The strong market and the robust operating performance, with a significant operating cash flow, allow Foraco to comprehensively refinance its balance sheet. To complete this debt refinancing, with an early repayment, Foraco successfully secured approximately $87-million in new debt, backed by its two main subsidiaries.

This refinancing is a key step in Foraco's journey as it significantly reduces the cost of debt (by approximately 50 per cent) and increases the flexibility for the company thanks to the extended maturity of the debt, a back-ended repayment profile and committed facilities of $15-million from Desjardins.

Tim Bremner, chief executive officer of Foraco, commented:

"This transaction has been concluded in the context of a strong upturn in our business and a positive long-term trend that aligns with the company's strategic priorities. It underscores our ongoing profitability and reinforces the relevance of our strategic positioning in addressing our customers' needs and the societal challenges associated with energy transition and water management. This refinancing will enable us to significantly improve net income generation and provides us with the opportunity to review our capital allocation."

Fabien Sevestre, chief financial officer of Foraco, added:

"The refinancing comes at a time of robust revenue growth and a record trailing 12-month EBITDA [earnings before interest, taxes, depreciation and amortization] as of Sept. 30, 2023, standing at $85-million, a remarkable 45-per-cent increase compared to the same period last year. We maintain a solid credit profile, with a net financial leverage ratio below one time. This refinancing will lead to a significant reduction in our annual financing costs equivalent to approximately $7-million. We are pleased to have built strong partnerships with Desjardins and Caisse d'Epargne and would like to express our gratitude to Marathon for their support over the past years."

About Foraco International SA

Foraco International is a global leading drilling services company that provides turnkey solutions for mining, energy, water and infrastructure projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third-largest global drilling enterprise with operations in 22 countries across five continents.