CD&R completes $600M investments in CHC Group
Funds affiliated with Clayton, Dubilier & Rice LLC (CD&R) have completed the third stage of CD&R’s investment in CHC Group Ltd. (NYSE: HELI) through the purchase of convertible preferred shares in a private placement.
CD&R has purchased an additional 100,000 of the preferred shares for a price of $100 million. These shares represent all of the preferred shares that were available in a rights offering to existing shareholders of CHC, an offering that was cancelled when participation by the existing shareholders failed to meet the minimum threshold for completion.
This purchase by CD&R follows the purchase of 116, 000 convertible preferred shares for a price of $116 million on October 30, and the purchase of 384,000 convertible preferred shares for a price of $384 million on November 12, 2014.
Upon closing of the investment, Clayton, Dubilier & Rice replaces First Reserve as CHC Group’s largest shareholder.
CHC plans to use proceeds from the investment primarily to reduce debt and other fixed charges.