CHC/British International Limited?

[Cyclic Hotline]

So whats the scoop with this one?
Who is the new British International Limited?


Tuesday February 22, 12:43 pm Eastern Time
Company Press Release
SOURCE: CHC Helicopter Corporation

CHC Signs Agreement To Sell Certain UK Non-Offshore Related Operations

ST. JOHN'S, NF, Feb. 22 /CNW-PRN/ - CHC Helicopter Corporation (`CHC`) (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYAF - news) is pleased to announce that it has concluded an Agreement for the sale of certain non-offshore UK based operations for pnds stlg 35.5 million or approximately Cdn. $83 million. The purchaser is a newly formed company, British International Limited. Equity and debt financing commitments have been arranged by the purchaser and it is expected that the transaction will close in late March subject to due diligence and standard closing conditions.


The transaction is comprised of the following:

(1) scheduled passenger services of Scotia Helicopters at Penzance;
(2) operations for the Ministry of Defence in Plymouth England and the
Falklands; and,
(3) light helicopter operations of Veritair Limited based in Cardiff,
Wales.


The transaction involves a total of eight UK based S61 helicopters, two Eurocopter AS 365 N2 helicopters and two light helicopters.

Craig L. Dobbin, O.C., Chairman and CEO of CHC, commented: `This transaction is consistent with CHC's long-term strategy to aggressively reduce debt and will better enable CHC to pursue other core initiatives in Europe and around the world.`

The President of CHC, Sylvain Allard commented: `The transaction is beneficial from CHC's perspective in that it crystallizes the value of these non-offshore operations, strengthens our balance sheet and allows us to reduce our S61 fleet which is becoming available from offshore operations.`

CHC Helicopter Corporation is the largest provider of helicopter transportation services in the world, with a combined fleet of 350 light, medium and heavy aircraft operating in 21 countries and approximately 2,800 employees worldwide.

[Cyclic Hotline]

From todays Aberdeen Press & JournalCHC to sell off non-oil trade

by Jeremy Cresswell
CHC Helicopter Corporation is selling the non-oil portion of its UK-based operations for £35.5 million to a group of former company employees led by Tony Jones, a senior figure in the North Sea sector for many years.

The deal is expected to be completed in a few weeks and includes the transfer of the British International name, which fell out of use following the merger of Bond Helicopters into CHC subsidiary British International – to create Scotia.

In a statement issued last night, CHC said: "Equity and debt financing commitments have been arranged by the purchaser and it is expected the transaction will complete late March subject to due diligence and standard closing conditions."

Transferring to the new company will be:

Scotia's scheduled Penzance-Scilly Isles service.

Operations for the Ministry of Defence in Plymouth and the Falkland Islands.

Light helicopter operations of Veritair based in Cardiff.

Aircraft included in the deal comprise eight S61Ns, two Eurocopter type AS 365 N2 units and a pair of light helicopters.

CHC chairman Craig Dobbin said: "This transaction is consistent with CHC's long-term strategy to aggressively reduce debt and will better enable CHC to pursue other core activities in Europe and the world."

Mr Jones, who has served with Bristow Helicopters and CHC through British International could not be contacted last night.

Dave Hogg of pilot's union Balpa said: "We will be seeking to protect the interests of members as more information becomes available."

[pitchlink]

Rumour has it that part of the sale of Bond Helicopters to CHC included a no-competition clause between CHC/Skotia and BAS, namely that one would not compete onshore if the other did not enter the offshore market. I may be seeing this move a bit cynically but it looks to me that CHC are moving out of onshore operations in the UK to avoid another operator entering the offshore market.
Probably not a bad idea looking at the way they have already started to treat employees in the new company. If BAS were to enter there would be a few migrations and Skotia would be left with too few pilots to fulfil their contracts.

[Cyclic Hotline]

Well, they had to pay for this somehow!

Tuesday February 22, 4:07 pm Eastern Time
Company Press Release
SOURCE: CHC Helicopter Corporation
CHC Issues Warrants For Class A Shares Exercisable Subject To Certain Conditions
ST. JOHN'S, NF, Feb. 22 /CNW-PRN/ - CHC Helicopter Corporation (`CHC`) (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYAF - news) announced today that as part of its financing arrangements with a Canadian chartered bank (the `Bank`), CHC has issued Warrants to the Bank (exercisable only under certain conditions) to purchase up to a total of 1,754,475 Class A Subordinate Voting Shares (`Class A Shares`). Three separate Warrants have been issued to purchase 350,895 Class A Shares (potentially exercisable on or after 30 April 2000), for 701,790 Class A Shares (potentially exercisable on or after 31 July 2000) and for a further 701,790 Class A Shares (potentially exercisable on or after 31 October 2000).

The Warrants are not immediately exercisable. Each Warrant will become exercisable as of the specified date only if (i) CHC has not refinanced its existing debt with the Bank below fifty percent (50%) of the then outstanding facilities and (ii) CHC's total debt to EBITDA ratio is above a specified level. CHC is actively pursuing debt reduction through non-core asset sales as well as its refinancing options, and believes it will meet condition (i) above prior to 30 April 2000 and, in any event, prior to 31 July 2000. The Warrants are not transferable prior to the date upon which they may be exercised.

The exercise price of the Warrants, should they become exercisable, is $3.70 per Class A Share. If and to the extent any of the Warrants do not become exercisable, due to the satisfaction of conditions by CHC, the Warrants will be cancelled. If the Warrants become exercisable, they remain exercisable until 1 January 2005.

Jo Mark Zurel, Senior Vice-President and Chief Financial Officer of CHC commented: `The issuance of these Warrants arises in part due to CHC's decision to opt for full senior debt financing, rather than proceed with a subordinated debt offering at this time. In our 30 April 1999 statements CHC indicated that Warrants were a possibility if CHC had availed of a subordinated debt alternative, and had not refinanced by 1 November 2000. However, we are confident in CHC's ability to implement a satisfactory senior term debt financing before 31 July 2000, and anticipate doing so before 30 April 2000. Accordingly, the current approach will result in lower long-term interest costs for CHC on a go-forward basis, and is preferable to the bridge financing as previously contemplated or a senior subordinated note offering. Our ability to conclude this term debt financing in the near future is enhanced by the disposition of certain UK operations, also announced today, which is expected to close in late March, 2000.`

CHC Helicopter Corporation is the largest provider of helicopter transportation services in the world, with a combined fleet of 350 light, medium and heavy aircraft operating in 21 countries and approximately 2,800 employees worldwide.