CHC Group Cancels Preferred-Shares Rights Offering - Quick Facts

(RTTNews) - CHC Group Ltd. (HELI), the parent company of CHC Helicopter, reported cancelling a rights offering of preferred shares in the company that had been made to existing shareholders. Completion of the rights offering to holders of CHC's ordinary shares was dependent on receiving at least $50 million in total demand from the company's shareholders. As total commitments at the time of the offering's 5 p.m. EST Monday expiration were less than $50 million, the rights offering would not be completed.

Instead, as per the terms of CHC's Aug. 21 private placement with Clayton, Dubilier & Rice or CD&R, CD&R would buy all 100,000 preferred shares available in the rights offering for $100 million. The purchase is in addition to 500,000 preferred shares previously acquired by CD&R for $500 million, making CD&R's total investment in CHC $600 million.

The final closing of the private placement is likely to occur on December 15.