Sept 23 (Reuters) - Emeco Holdings Ltd (EHL) : Recapitalisation...

Sept 23 (Reuters) - Emeco Holdings Ltd (EHL) :

• Recapitalisation and merger with Orionstone and Andy'S ehl.ax
• Expects to refinance its asset backed loan (abl) facility which matures in december 2017
• Merger is expected to generate significant cost synergies and substantially reduce Emeco'S capital expenditure requirements going forward
• Signed binding restructuring support agreement with co's financiers and shareholders & creditors of Orionstone & Andy'S Earthmovers
• Deal de-risks co's capital structure by reducing leverage, expected to be 4.4x FY16pf Ebitda, 1 down from 7.2x pre-transaction
• Cash generation expected to continue to delever balance sheet with A$42m cash flow after financing costs forecast for FY18
• Recommends shareholders vote in favour of resolutions required to give effect to transaction in absence of superior proposal
• Transaction involves A$20m equity raising with A$10m underwritten by co's current major shareholders first Samuel and Black Crane
• Says committed to closing its remaining cross currency swap positions which will generate US$12m of cash proceeds.