Boart Longyear Limited (BLY) said it raised about $187 million through the retail component of its 1 for 1 accelerated non-renounceable pro-rata entitlement offer. The company said it received applications for approximately 258.1 million shares, including applications from eligible retail shareholders under the retail entitlement offer for 38 million new shares in excess of their entitlements.

Boart Longyear said the shortfall in the retail entitlement offer is approximately $117.5 million, or 435.2 million shares.

The company said shares not applied for under the retail offer would be issued to the underwriters. The underwriters have in turn entered into sub-underwriting agreements with a broad group of institutional investors for the total number of retail shortfall shares.

Boart Longyear said the funds raised, together with those from the other components of the offer would be used to repay existing debt.

Following the offer, the company said its pro-forma net debt, as at 30 June 2009, was expected to be US$166 million.

As previously announced, the offer also includes an institutional placement, which is conditional on shareholder approval being obtained at an EGM to be held on 24 September 2009.

If shareholders approve the conditional placement, Boart Longyear said it intends to offer all eligible shareholders an opportunity to participate in a share purchase plan.

As at 1451 AEST, Boart Longyear shares were down 0.5c to 27c.