Erickson opens DIP purchase option to Second Priority Note Holders

Erickson opens DIP purchase option to Second Priority Note Holders

14-Dec-2016 Source: Erickson

Erickson Incorporated (NASDAQ:EAC) (the “Company”), a leading global provider of aviation services, today announced the commencement of a process to syndicate participation in a debtor-in-possession term loan facility (the “DIP Term Facility”) by eligible beneficial holders of Erickson’s 8.25% Second Priority Senior Secured Promissory Notes due 2020 (“Second Priority Notes”) as of December 2, 2016.  Such eligible beneficial holders of Second Priority Notes shall have the opportunity to purchase a portion of $62,500,000 in aggregate principal amount of the DIP Term Facility pursuant to certain syndication procedures (the “Syndication Procedures”) established by Erickson, certain holders of the Second Priority Notes that entered into a creditor support agreement with the Debtors and certain other creditors of the Debtors, and the agent under the DIP Term Facility.  The Syndication Procedures were filed on the docket of the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”) on November 29, 2016 at docket number 110.  On December 2, 2016, the Bankruptcy Court entered into a final order granting final approval of the DIP Term Facility (the “Final DIP Order”), and pursuant to the Final DIP Order, Erickson has been authorized to assist in the syndication of the DIP Term Facility in accordance with the Syndication Procedures.

Participation in the opportunity is limited to an eligible holder of the Second Priority Notes (including each Backstop Party (as defined in the Final DIP Order)) that is an entity that is (i) either (A) a Qualified Institutional Buyer, as such term is defined in Rule 144A under the Securities Act or (B) an Institutional Accredited Investor within the meaning of Rule 501(A)(1), (2), (3) or (7) under the Securities or an entity in which all of the equity investors are such institutional “Accredited Investors” under the Securities Act, (ii) a beneficial holder of Second Priority Notes on December 2, 2016, and (iii) not the Company or an affiliate of the Company and (iv) a Backstop Party (as defined in the Final DIP Order).

Pursuant to the Syndication Procedures, the syndication process shall begin on December 8, 2016 and expire at 5:00 P.M. New York City time on December 19, 2016, unless extended or earlier terminated by mutual agreement of the Backstop Parties, the Company and the agent under the DIP Term Facility. Detailed information concerning eligibility for participation in the DIP Term Facility syndication, the requirements and process for participation, and various relevant deadlines in connection with the syndication are set forth in the Syndication Procedures.

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