CHC Group completes $500m recapitalisation plan


Helicopter services provider CHC Group has completed its $500m recapitalisation plan, designed to cut funded debt obligations by up to $500m.

“A substantial portion” of CHC’s existing debt and equity holders agreed to provide more than $100m in new money and liquidity enhancing commitments, according to the company. That consists of $60m in initial funding, an extra $30m of available commitments, and $10m from adjustments to its aircraft financing facilities.

The financial restructuring represents the culmination of extensive negotiations with CHC’s key financial stakeholders over recent months, said the company. The transaction provides the liquidity and sustainable long-term capital structure to focus on continued operational excellence and providing its clients the safest and most reliable helicopter services worldwide, it said.

David Balevic, CEO CHC Group, added: “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.” The enhanced balance sheet will provide greater operating flexibility to meet the rapidly changing rotary wing aviation market, he said.

CHC was advised by Paul, Weiss, Rifkind, Wharton & Garrison, Moelis & Company and AlixPartners. CHC’s financial stakeholders participating in the transaction were advised by Ropes & Gray and FTI Consulting.