Helicopter service provider CHC Group has completed its $500 million recapitalization plan, designed to reduce funded debt obligations by up to $500 million.
“A substantial part” existing debt and equity holders of CHC have agreed to provide more than $100 million in new money and liquidity enhancement pledges, according to the company. This consists of $60 million in initial funding, an additional $30 million in available commitments and $10 million from adjustments to its aircraft financing facilities.
The financial restructuring represents the culmination of extensive negotiations with CHC’s key financial stakeholders over the past few months, the company said. The transaction provides the liquidity and a sustainable long-term capital structure to focus on continued operational excellence and provide its customers with the safest and most reliable helicopter services in the world, he said.
David Balevic, CEO of CHC Group, added: “Today marks an important and positive step forward for CHC, paving the way for a significant reduction in the company’s debt burden, which will benefit our customers, suppliers and employees.” The improved balance sheet will provide greater operational flexibility to respond to the rapidly changing rotary-wing aviation market, he said.
CHC was advised by Paul, Weiss, Rifkind, Wharton & Garrison, Moelis & Company and AlixPartners. CHC’s financial stakeholders involved in the transaction were advised by Ropes & Gray and FTI Consulting.