Company sells 600,000 of its convertible preferred shares in offering
By Devika Patel
Knoxville, Tenn., Aug. 27 – CHC Group Ltd. priced a $600 million private placement of 8.5% convertible preferred stock with Clayton, Dubilier & Rice Fund IX, LP on Aug. 21, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was announced Aug. 22.
The company will sell 600,000 preferreds at $1,000.00 apiece. It may redeem the preferreds at any time.
The preferreds are subject to mandatory conversion and initially convertible into ordinary shares at $7.50 per share, which is a 21.57% premium to the Aug. 20 closing share price of $6.17.
Proceeds will be used to reduce debt and other fixed charges; optimize the mix of owned versus leased aircraft; and for other general corporate purposes.
Based in George Town, Cayman Islands, CHC is a provider of commercial helicopter services to the offshore oil and gas industry.
| Issuer: | CHC Group Ltd.
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| Issue: | Convertible preferred stock
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| Amount: | $600 million
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| Shares: | 600,000
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| Price: | $1,000.00
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| Dividends: | 8.5%
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| Conversion price: | $7.50
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| Conversion premium: | 21.57%
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| Call: | Yes
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| Warrants: | No
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| Investor: | Clayton, Dubilier & Rice Fund IX, LP
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| Announcement date: | Aug. 22
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| Pricing date: | Aug. 21
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| Stock symbol: | NYSE: HELI
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| Stock price: | $6.17 at close Aug. 20
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| Market capitalization: | $559.61 million
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