Bristow may price $200 million three-year mandatory convertible preferreds in September

By Kenneth Lim

Boston, Aug. 21 - Bristow Group Inc.'s planned $200 million of three-year mandatory convertible preferred stock may not be priced until mid-September, market sources said on Monday.

Price talk has not been set for the deal, which was announced late Friday.

The deal, which comprises 4 million preferred shares, will be offered at $50 apiece. There is a greenshoe for a further $30 million, or 600,000 preferred shares.

Credit Suisse is the bookrunner of the registered off-the-shelf deal.

The mandatories will not be redeemable.

Bristow may force conversion of the preferreds at any time if the closing price of Bristow common stock exceeds 150% of the threshold appreciation price, which has not been set, for at least 20 out of 30 consecutive trading days.

The preferreds may be converted upon a cash acquisition of Bristow, with the conversion ratio made whole. The conversion ratio will also have dividend protection.

Bristow, a Houston-based provider of helicopter services to the offshore oil and gas industry, plans to use the proceeds of the deal to fund aircraft purchases. Upon the completion of the offering, Bristow will exercise options it currently has to acquire additional large aircraft.

Bristow stock closed at $36.90 on Monday, lower by 3.96% or $1.52.

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