Bristow gets $230 million term loans, repays $110.7 million loans

By Angela McDaniels

Tacoma, Wash., Sept. 27 – Bristow Group Inc. subsidiary Bristow Equipment Leasing Ltd. completed the final funding for $230 million of term loans on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The borrower received commitments for the term loans on July 17.

The proceeds of the term loans were used to repay $93.7 million of outstanding term loan debt under Bristow Group’s Nov. 22, 2010 amended and restated revolving credit and term loan agreement, about $17 million of outstanding term loan debt under its Nov. 5, 2015 term loan credit agreement and for general corporate purposes.

Following the mandatory prepayments, the company’s outstanding term loan debt was about $159.7 million under the 2010 credit agreement and about $28.9 million under the 2015 credit agreement. The company plans to repay the latter and other amounts outstanding under the 2015 credit agreement in full on Monday and to terminate the 2015 credit agreement.

Terms of new loans

As previously reported, the interest rate on the new term loans is one-month Libor plus 500 basis points.

The borrower must repay each term loan on an annuity basis, payable monthly in arrears starting on the seventh month with a final payment of 53% of the initial amount due on the 70th month.

The obligations are guaranteed by the parent company and secured by pledged aircraft, initially consisting of 24 helicopters, together with the engines and other equipment and parts that may from time to time be installed on the pledged aircraft and other related assets.

The term loans require mandatory prepayments in connection with some terminations of intercompany lease and sublease agreements for the pledged aircraft, events resulting in loss of the pledged aircraft and changes in laws causing loan documents and security documents to be unenforceable or unobservable. Other than that, the borrower is not permitted to prepay the term loans before June 30, 2019. Some of the mandatory prepayments and voluntary prepayments will require prepayment fees as follows: 4.5% of par before June 30, 2019; 3.5% between June 29, 2019 and June 30, 2020; 2.5% between June 29, 2020 and June 30, 2021; 1.5% between June 29, 2021 and June 30 2022; and none after June 29, 2022.

PK AirFinance Sarl is the agent.

Bristow Group is a Houston-based company that provides helicopter services to the offshore energy industry.

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