CHC completes recapitalization deal
Helicopter services provider CHC Helicopter has announced that it has completed a comprehensive recapitalization transaction which it says will reduce its debt obligations by up to US$500 million
The transaction is subject to regulatory approvals. As part of the recapitalization, a substantial portion of CHC’s existing debt and equity holders agreed to provide over $100 million in new money and liquidity enhancing commitments.
This consists of $60 million in an initial funding, as well as $30 million of available commitments, and $10 million from adjustments to its aircraft financing facilities.
The transaction is the culmination of several months of negotiations between CHC and its key financial stakeholders. The company says that the deal will provide ‘the liquidity and sustainable long-term capital structure necessary to focus its efforts on continued operational excellence’.
CHC was advised by Paul, Weiss, Rifkind, Wharton & Garrison, Moelis & Company, and AlixPartners. Its financial stakeholders participating in the transaction were advised by Ropes & Gray and FTI Consulting.
“Today marks a significant, positive step forward for CHC providing a clear path to a significantly reduced debt burden for the company which will benefit our customers, suppliers, and employees,” said David Balevic, CEO of CHC Group. “Our enhanced balance sheet will provide us greater operating flexibility to meet the rapidly changing rotary wing aviation market.”
CHC celebrated its 75th anniversary of operations earlier this month.
Oliver Cuenca
Oliver Cuenca is a Junior Editor at AirMed&Rescue. He was previously a News and Features Journalist for the rail magazine IRJ until 2021, and studied MA Magazine Journalism at Cardiff University. His favourite helicopter is the AW169 – the workhorse of the UK air ambulance sector! He also led the creation of Waypoint: The AirMed&Rescue podcast, serving as its Production Editor and co-host.