Bis stakeholders agree to new capital structure Company Announcement 20 July, 2017 Bis Industries stakeholders agree to new capital structure Perth, Australia – Resource logistics provider Bis Industries ("Bis") is pleased to announce that its key stakeholders have reached an agreement in principle to recapitalise and significantly de-leverage the company’s balance sheet, positioning Bis for a strong future. The major parties to the negotiation – Bis, KKR and certain senior lender and PIK noteholder representatives – have agreed to a debt to equity conversion by way of schemes of arrangement that, subject to receipt of necessary approvals, will result in senior lenders and PIK noteholders assuming ownership of the Bis operating entities. The proposed debt to equity swap will reduce total debt by around 80%, or $1 billion. The senior lending group includes Carlyle Strategic Partners IV, Metrics Credit Partners, Värde Partners and others. Chairman of Bis, Charles Lenegan said, "This restructuring is a significant milestone that will reposition Bis to take advantage of future growth opportunities, in addition to continuing to support existing customers." Bis CEO Brad Rogers said, "The proposed capital structure represents a generational re-set of our balance sheet and opens up a range of exciting opportunities for our business." "Bis has always been a strong operator with a resilient business model and long-term, blue-chip customers, but our capital structure wasn’t suited to the market conditions we’ve seen in the past few years. Having now addressed our capital structure, we’ll be in great shape to deal with whatever challenges and opportunities come our way." "The future owners of the business bring deep international experience and capability, and we’re excited about the opportunity to work with them. Our existing owner, KKR, has been supportive of the Company pursuing this outcome." "I would like to acknowledge the support of all of our stakeholders, and in particular our customers and employees, whose ongoing commitment has been invaluable as we managed market conditions and set about the difficult work of restructuring a complex capital structure." "A revitalised balance sheet will create options for the business that didn’t previously exist. After a long process the future prospects are very exciting for all involved." The restructure of Bis Industries is likely to be completed in the 4th quarter of 2017. -ends- Media enquiries: Paul Tierney – 0415 900 891 About Bis Industries Bis Industries is a leading Australian provider of specialised logistics and materials handling solutions for the world’s biggest mining and resource companies. We process, handle and haul millions of tonnes of materials across Australia and Indonesia. We keep our customers producing safely by taking responsibility for critical but non-core processes and integrating people, funding and technology. bisindustries.com Download the PDF version.