Canadian Helicopters gets $8 million term loan
HNZ Group subsidiary Canadian Helicopters has received an $8 million loan from investment firm Crown Capital Partners.
The term loan closed on 29 December – the same day as the acquisition of HNZ. It holds a 36.5% interest with a fixed interest rate of 10% per year with maturity set for five years.
“We’re pleased to support Don and his team in the acquisition of Canadian Helicopters,” said Chris Johnson, Crown’s president and CEO. “This is a very well-established operation with a solid reputation for safety and quality of service.
“The business is underpinned by multi-year contracts with blue-chip clients and a large fleet of owned helicopters. Going forward, the company is well positioned to benefit from improving commodity markets and an increase in the usage of helicopters for disaster relief efforts.”
The loan was closed on the same day that HNZ Group was acquired by its CEO, Don Wall, and PHI. Wall took control of the Group’s Canadian operations (Canadian Helicopters).
Canadian Helicopters provides flight training and helicopter repair and maintenance services. Its customers include the US Department of Defense, the Federal Government of Canada, Nova Scotia Department of Health, and Bell Helicopter.
“Crown’s financing solution was the ideal complement to our senior facility,” said Wall. “The Crown team understood our business quickly and was able to get us a commitment in less than two weeks.”