CHC Group To Receive Investment From Clayton, Dubilier & Rice - Quick Facts

(RTTNews) - CHC Group Ltd. (HELI) announced definitive agreements for Clayton, Dubilier & Rice managed funds to invest $500 million in the company through the purchase of convertible preferred shares to be issued in a private placement.

CHC plans to use proceeds from the investment primarily to reduce debt and other fixed charges.

As part of the transaction, CHC also intends to pursue a $100 million rights offering of the convertible preferred shares to existing shareholders, resulting in total investment up to an aggregate of $600 million.

CD&R will have a 45 percent ownership position in CHC Group on an as-converted, pro-forma basis, based on a $500 million investment and prior to the rights offering. First Reserve Corp. and its affiliates, which purchased CHC in 2008, would retain approximately 29 percent ownership on a pro-forma basis.

Upon closing of the transaction, CD&R Operating Partner John Krenicki will become chairman of the board of CHC. CD&R will also appoint three additional members to CHC's board.

In addition, CHC reiterated its fiscal 2015 revenue and EBITDAR guidance.