PHI buys back notes in preparation for new offer

Alex Baldwin
By Alex Baldwin July 5, 2018 14:30

PHI buys back notes in preparation for new offer

PHI Helicopters is nearing completion of a tender offer of an early buy-back of notes. These are those outstanding from a 2014 issue of $500 million and that are due for redemption in 2019.

Essentially, this is a balance sheet restructuring in preparation for a new $500 million offering maturing in 2023, plans for which were announced in June this year.

The offshore oil-and-gas helicopter operator has not yet entered into a definitive agreement for its proposed 2023 debt offering, opting first to buy-back the shares of its previous $500 million debt offering issued in 2014 and to fully repay and terminate its existing revolving credit facility which runs until on 7 March 2019.

The tender offer for the 2019 notes was announced on 18 June. PHI had received tenders and consents from holders of 89.12% of the principal amount of the 2019 notes on 29 June, the date on which tenders became irrevocable.

The company also proposed a consent solicitation for the 2019 notes that would see most of the restrictive covenants related to the 2019 senior notes removed in the event of a default. The solicitation is still awaiting approval from the SEC.

In order to pay for the remaining 10.88% of the 2019 notes, PHI will need to complete “one or more” debt financing transactions to have the funds available. PHI intends to do just this and is currently marketing a senior secured term loan to do so.

PHI expects to purchase the 2019 notes validly tendered on time. The withdrawal deadline has passed for the notes, closing at 5:00pm ET on 29 June, meaning stakeholders can no longer withdraw the notes on or before the expiration date of the offering.

Alex Baldwin
By Alex Baldwin July 5, 2018 14:30

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