CD&R completes $600M investments in CHC Group

CD&R completes $600M investments in CHC Group
December 15
17:08 2014

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.

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