Bristow $200 million three-year mandatory convertible preferreds talked at 5.25%-5.75%, up 20%-25%

By Kenneth Lim

Boston, Sept. 11 - Bristow Group Inc. plans to price $200 million of three-year mandatory convertible preferred stock, talked at a dividend of 5.25% to 5.75% and a threshold appreciation range of 20% to 25%.

The deal was relaunched Monday after an initial launch in August and is expected to price Wednesday after the market closes.

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

Credit Suisse and Goldman Sachs are the bookrunners of the registered off-the-shelf deal. Credit Suisse was originally the sole bookrunner.

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 $36.33 on Monday, lower by 2.73% or $1.02 before the deal was announced.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.