CHC cancels rights issue as CD&R invests $100M more

CHC cancels rights issue as CD&R invests $100M more

27-Nov-2014 Source: CHC

CHC Group Ltd. (NYSE: HELI), the parent company of CHC Helicopter, today announced that it has cancelled a rights offering of preferred shares in the company that had been made to existing shareholders.

Completion of the rights offering to holders of CHC’s ordinary shares was dependent upon receiving at least $50 million in total demand from the company’s shareholders. Because total commitments at the time of the offering’s 5 p.m. EST Monday expiration were less than $50 million, the rights offering will not be completed.

Instead, consistent with terms of CHC’s Aug. 21 private placement with Clayton, Dubilier & Rice (CD&R), CD&R will purchase all 100,000 preferred shares available in the rights offering for $100 million. The purchase is in addition to 500,000 preferred shares previously acquired by CD&R for $500 million, making CD&R’s total investment in CHC $600 million.

The final closing of the private placement is expected to occur on Dec. 15.

As previously announced, CHC estimates that net proceeds from the private placement will be approximately $572.4 million, excluding anticipated expenses. CHC plans to use proceeds from the investment primarily to reduce debt and other fixed charges. A portion of the proceeds is expected to be used to redeem $105 million of senior unsecured notes and $130 million of senior secured notes, plus associated premiums.

All subscription payments received from shareholders that exercised offering rights will be returned by the subscription agent as soon as practical, without interest or penalty.

About CHC Group Ltd.
CHC Group Ltd. is a commercial operator of helicopters focused on enabling customers to go further, do more and come home safely. CHC provides helicopter flight services to oil and gas companies and government search-and-rescue agencies, and helicopter maintenance, repair and overhaul services to organizations through the Heli-One segment. The company operates 233 aircraft in about 30 countries around the world.

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