First Reserve prices CHC Helicopter IPO for up to $608M

January 08
11:43 2014

CHC Group Ltd, owned by private equity firm First Reserve Corp, has priced its proposed initial public offering (IPO). The company intends to issue 29,412,000 shares at US $16-18 per share for gross proceeds of $470 million to $529 million.

CHC has granted an over-allotment option of additional 4,411,800 shares to the underwriting syndicated co-led by J.P. Morgan Securities and Barclays Capital, which also includes UBS Securities, HSBC Securities (USA), RBC Capital Markets, Wells Fargo Securities, BNP Paribas Securities, Standard Bank , Cormark Securities (USA), Cowen and Company, Raymond James & Associates, Simmons & Company International, and Tudor, Pickering, Holt & Co. Securities.

CHC expects to raise between $541 million to $608 million assuming full exercise of the over-allotment option.

CHC shares have been approved for listing on the New York Stock Exchange (NYSE) under the symbol “HELI.”

Funds affiliated with First Reserve Management, L.P. currently owns 100% of CHC outstanding shares or 82% on fully diluted basis.

Upon completion of the IPO, First Reserve will own 58% of CHC outstanding shares (assuming full exercise of over-allotment option) or 51% on fully diluted basis.

CHC expects to be value at up to $1.63 billion on fully diluted basis.

CHC Helicopter is a provider of helicopter transportation services primarily to the offshore oil and gas industry for production and exploration activities.

In 2008, First Reserve took CHC Helicopter private for CDN $3.7 billion, including assumption of CDN $1.2 billion debt. First reserve committed up to CDN $1.64 billion in equity to fund the acquisition.

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