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The 0.97-for-one offer will issue shares at 16.5c each and is fully underwritten by distressed debt firm Centerbridge Partners.
Documents were sent out to investors late yesterday and the rights will trade on the Australian Securities Exchange from today until January 19.
The rights issue forms part of a broader recapitalisation undertaken by Boart, with a number of the first components already implemented.
The company has already raised about $US5.6 million ($A6.84 million) through a placement with Centerbridge, and refinanced its former revolving bank credit facility by drawing down a $120 million loan from Centerbridge.
The driller also repurchased its existing secured notes for $105 million by drawing down on another loan from Centerbridge.
Earlier this month another $21 million was raised through a further placement with Centerbridge.
Along with the rights issue, Boart still has to complete an off-market buyback of ordinary shares capped at $A24.5 million, which may be reduced if it results in Centerbridge becoming a majority stockholder.
The refinancing paves a path ahead for Boart, which has struggled against a weak mining services market and net debt of about $US550 million.
