The new agreement with a number of lending institutions matures in March 2018, and will allow the company to refinance all outstanding amounts under its existing $300 million debt facility.

The facility will save the company $2.2 million per annum in reduced finance charges.

Ausdrill cancelled out its existing surplus headroom, developed through a focus on cash flow generation and deleveraging, to achieve more favourable financial terms.

The company said the new agreement would continue to provide the company with headroom while allowing it to meet its anticipated capital expenditure requirements.

“Our relatively conservative approach to debt, as well as the strength of our credit standing, was recognised by our lenders and reflected in their strong support for refinancing,” Ausdrill chief financial officer Jose Martins said.

The new debt facility is welcome finance news for Ausdrill, after it reduced its 2015 earnings outlook from more than $173.7 million to somewhere between $150-160 million in October.

The collapse of Western Desert Resources and an early end to its contract with Evolution Mining for work at the Edna May mine contributed to the revised earnings figure.