Ausdrill's proposed acquisition of Barminco Holdings Pty Ltd. via a scrip offering and cash should improve Ausdrill's scale and diversity. In addition, Ausdrill will raise A$250 million of underwritten equity to redeem its US$300 million senior unsecured notes, demonstrating Ausdrill's commitment to maintaining a prudent financial policy. We are placing the 'BB-' long-term issuer credit rating on the company and 'BB+' and 'BB-' ratings on the company's senior secured and senior unsecured issues, respectively, on CreditWatch with positive implications. We plan to resolve the CreditWatch following completion of the acquisition. We would raise the rating by one notch to 'BB' if the transaction is completed in its current form, with further potential for rating upside. On Aug. 15, 2018, S&P
