CHC Group plans rights offering for $100 million convertible preferreds

By Susanna Moon

Chicago, Nov. 5 – CHC Group Ltd., the parent company of CHC Helicopter, said it plans a rights offering for up to $100 million of convertible preferred shares.

Shareholders will receive at no charge a nontransferable right for newly issued preferred shares through the rights offering, according to a company press release. Holders must be of record as of Nov. 3.

The rights offering runs from Nov. 7 through 5 p.m. ET on Nov. 24.

CHC said it will issue up to 100,000 preferreds at a price of $1,000 each, which was the price for affiliates of Clayton, Dubilier & Rice in a private placement inked on Aug. 21.

Each right allows shareholders to purchase 0.001229 preferreds and up to another 0.0016422 preferreds if the basic subscription rights are exercised in full.

The additional amount corresponds to the pro-rata share of 6922767 Holding (Cayman) Inc., a company controlled by affiliates of First Reserve Management LP, which has said it will not participate in the rights offering, the release noted.

For the rights offering to go through, shareholders must purchase at least $50 million preferreds.

Clayton, Dubilier has agreed to purchase the rest of the preferreds if shareholders choose not to purchase all of the $100 million preferreds. As a result, its total investment in CHC could rise to $600 million.

CHC is a George Town, Cayman Islands-based provider of commercial helicopter services to the offshore oil and gas industry.

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