More CHC divestment!
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More CHC divestment!
Monday June 5, 2:31 pm Eastern Time
Press Release
SOURCE: CHC Helicopter Corporation
CHC sells Scandinavian subsidiaries
ST. JOHN'S, NF, June 5 /CNW/ - CHC Helicopter Corporation ("CHC") (TSE: FLY.A - news
and FLY.B - news; NASDAQ: FLYA - news) is pleased to announce the following sales of
non-core assets in Sweden and Norway for total proceeds of approximately $20 million:
1. CHC's wholly-owned subsidiary, Heliflyg AB, of Borlange, Sweden, has been sold to Osterman Helicopter i Goteborg AB for 36.5 million SEK (CDN $6.09 million);
2. CHC has entered into an agreement to sell its wholly-owned subsidiary, Lufttransport, of Tromso, Norway, to Norwegian Air Shuttle AS (NAS) for 85 million NOK (CDN $14.2 million). Included in the sale agreement, expected to close June 30, NAS assumes lease financing for seven (7) Beech KingAir 200s used in Air Ambulance work, and has paid CHC a 20 million NOK (CDN $3.4 million) non-refundable deposit.
Heliflyg is an onshore helicopter services company operating small and medium sized helicopters in Sweden. Its total revenues and historic EBITDA for the past 12 months were approximately CDN $14.3 million and CDN $1.2 million, respectively.
Lufttransport is primarily a fixed-wing air ambulance service, serving communities in Norway's far north, and providing some helicopter air ambulance services. Its total revenues and historic EBITDA for the past 12 months were $25.7 million and $1.3 million respectively.
CHC Chairman and Chief Executive Officer Craig L. Dobbin said: "The sale of these two non-core divisions is another step in CHC's strategic plan to seriously reduce debt and strengthen the company's position as the world's leading offshore oil and gas helicopter services company. By concentrating on our core strengths, we will make better use of capital for our shareholders."
CHC Helicopter Corporation is the world's leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, and with approximately 2,600 employees worldwide.
Press Release
SOURCE: CHC Helicopter Corporation
CHC sells Scandinavian subsidiaries
ST. JOHN'S, NF, June 5 /CNW/ - CHC Helicopter Corporation ("CHC") (TSE: FLY.A - news
and FLY.B - news; NASDAQ: FLYA - news) is pleased to announce the following sales of
non-core assets in Sweden and Norway for total proceeds of approximately $20 million:
1. CHC's wholly-owned subsidiary, Heliflyg AB, of Borlange, Sweden, has been sold to Osterman Helicopter i Goteborg AB for 36.5 million SEK (CDN $6.09 million);
2. CHC has entered into an agreement to sell its wholly-owned subsidiary, Lufttransport, of Tromso, Norway, to Norwegian Air Shuttle AS (NAS) for 85 million NOK (CDN $14.2 million). Included in the sale agreement, expected to close June 30, NAS assumes lease financing for seven (7) Beech KingAir 200s used in Air Ambulance work, and has paid CHC a 20 million NOK (CDN $3.4 million) non-refundable deposit.
Heliflyg is an onshore helicopter services company operating small and medium sized helicopters in Sweden. Its total revenues and historic EBITDA for the past 12 months were approximately CDN $14.3 million and CDN $1.2 million, respectively.
Lufttransport is primarily a fixed-wing air ambulance service, serving communities in Norway's far north, and providing some helicopter air ambulance services. Its total revenues and historic EBITDA for the past 12 months were $25.7 million and $1.3 million respectively.
CHC Chairman and Chief Executive Officer Craig L. Dobbin said: "The sale of these two non-core divisions is another step in CHC's strategic plan to seriously reduce debt and strengthen the company's position as the world's leading offshore oil and gas helicopter services company. By concentrating on our core strengths, we will make better use of capital for our shareholders."
CHC Helicopter Corporation is the world's leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, and with approximately 2,600 employees worldwide.
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Friday June 9, 11:30 am Eastern Time
Company Press Release
CHC Helicopter Corporation
Management-Led Buy-Out Proposed for CHC's Canadian Divisions
ST. JOHN'S, NF, June 9 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA news) announced today it has entered into a memorandum of understanding with the management of its two domestic divisions, Canadian Helicopters Eastern ("CHE'') and Canadian Helicopters Western ("CHW'') for the sale of the divisions' assets to a management-led group.
The proposed management buy-out is under consideration only, and is subject to numerous conditions, including the negotiation and execution of definitive agreements, the availability of equity and debt financing and the receipt of necessary consents and approvals.
The purchase price would be a cash amount equal to the net book value of the assets of CHE and CHW, currently estimated at $130 million. Of that amount, CHC would keep a $25.5 million investment and retain a 45 per cent ownership interest.
The company would be operated by the current management of the two divisions that comprise this business. These Canadian onshore helicopter operations have a fleet of 3 heavy, 24 medium and 130 light helicopters.
CHC would still have a substantial interest in the domestic Canadian operations while concentrating on its core activity of offshore oil and gas helicopter support.
CHC Helicopter Corporation is the world's leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, and with approximately 2,600 employees worldwide.
Company Press Release
CHC Helicopter Corporation
Management-Led Buy-Out Proposed for CHC's Canadian Divisions
ST. JOHN'S, NF, June 9 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA news) announced today it has entered into a memorandum of understanding with the management of its two domestic divisions, Canadian Helicopters Eastern ("CHE'') and Canadian Helicopters Western ("CHW'') for the sale of the divisions' assets to a management-led group.
The proposed management buy-out is under consideration only, and is subject to numerous conditions, including the negotiation and execution of definitive agreements, the availability of equity and debt financing and the receipt of necessary consents and approvals.
The purchase price would be a cash amount equal to the net book value of the assets of CHE and CHW, currently estimated at $130 million. Of that amount, CHC would keep a $25.5 million investment and retain a 45 per cent ownership interest.
The company would be operated by the current management of the two divisions that comprise this business. These Canadian onshore helicopter operations have a fleet of 3 heavy, 24 medium and 130 light helicopters.
CHC would still have a substantial interest in the domestic Canadian operations while concentrating on its core activity of offshore oil and gas helicopter support.
CHC Helicopter Corporation is the world's leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, and with approximately 2,600 employees worldwide.
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Tuesday June 13, 2:43 pm Eastern Time
Company Press Release
SOURCE: CHC Helicopter Corporation
CHC Helicopter Corporation announces private debt offering
ST. JOHN'S, NF, June 13 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA - news) announced today that it intends to make a private offering of 125,000,000 Euros of Senior Subordinated Notes due 2007 (the "Notes'') to qualified institutional buyers and non-U.S. persons. The offering is intended to be made primarily in Europe.
Proceeds from the offering will be used to repay part of CHC's currently outstanding bank credit facility and certain fees and expenses related to the financings incurred as part of CHC's acquisition of Helicopter Services Group ASA in August 1999. This offering is expected to close by the end of June 2000.
The Notes to be offered have not been registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The Notes may not be offered or sold in Canada except pursuant to transactions that are exempt from the prospectus requirements of applicable provincial securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Notes referenced above in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Company Press Release
SOURCE: CHC Helicopter Corporation
CHC Helicopter Corporation announces private debt offering
ST. JOHN'S, NF, June 13 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA - news) announced today that it intends to make a private offering of 125,000,000 Euros of Senior Subordinated Notes due 2007 (the "Notes'') to qualified institutional buyers and non-U.S. persons. The offering is intended to be made primarily in Europe.
Proceeds from the offering will be used to repay part of CHC's currently outstanding bank credit facility and certain fees and expenses related to the financings incurred as part of CHC's acquisition of Helicopter Services Group ASA in August 1999. This offering is expected to close by the end of June 2000.
The Notes to be offered have not been registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The Notes may not be offered or sold in Canada except pursuant to transactions that are exempt from the prospectus requirements of applicable provincial securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Notes referenced above in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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Wednesday June 14, 5:45 pm Eastern Time
S&P raises CHC Helicopter corp credit rating
(UPDATE: Press release provided by Standard & Poor's)
NEW YORK, June 14 - Standard & Poor's today assigned its single-'B' rating to CHC Helicopter Corp.'s euro (Eur) 125 million senior subordinated notes due 2007.
Standard & Poor's also raised its corporate credit rating on CHC to double-'B'-minus from single-'B'-plus.
The outlook is stable.
The notes are rated two notches lower than the corporate credit rating, reflecting their subordination to the senior secured debt. The note proceeds will be used primarily to refinance part of CHC's current bank facility. The current bank facility was arranged as part of CHC's C$542 million acquisition of Helicopter Services Group ASA in 1999.
The ratings are based on CHC's position as one of two global heavy helicopter operators in the oil services industry, its relations and contracts with major oil companies, and its efficient operations and fleet management. The ratings are tempered by the company's high debt load and its relatively high level of fixed-lease obligations.
CHC is the largest helicopter service company in the world, and the largest commercial operator of heavy airframes (20 or more passengers). Consolidated with Helicopter Services Group, the company has a worldwide fleet of 320 aircraft, of which about 60% by value are classified as heavy (as of Jan. 31, 2000).
Almost two-thirds of CHC's revenues currently come from the oil and gas industry, with a particular concentration in the U.K. and Norwegian sectors of the North Sea. The company has bases on six continents and serves most of the international offshore activity areas with the exception of the Gulf of Mexico. In the oil and gas sectors in which CHC operates, helicopters are typically chartered on longer-term contracts.
Although the nature of these contracts provides more stability than spot contracts, they remain susceptible to usage volume (and thus to the cyclicality of exploration and production activities) and are competitively bid. The consolidation in the helicopter services industry--the industry is now oligopolistic in all major markets--may help stabilise the pricing and the customer relationships in the oil and gas segment. Almost 70% of CHC's helicopter revenues in the next year will come from longer-term contracts.
Helicopter service companies are more stable than other service providers in the oil industry, because helicopters operate throughout the exploration and production cycle, have demand outside the oil industry, and can be moved to other markets and regions.
In addition, CHC derives almost 80% of its oil and gas revenues from flights to production platforms, a more stable sector than exploration rigs. Nonetheless, cyclicality does affect helicopter demand, and surplus capacity can drive down rates while a drop in utilization rates can affect profitability.
Standard & Poor's expects the North Sea sectors will increase exploration and production drilling (as capital spending increases in the region) and maintain current production levels in the next few years.
Longer term, this mature region has to develop its deep sea and gas reserves (and markets), and likely address its high tax structure, to maintain current production volumes. Cost initiatives in the U.K. sector already have reduced exploration and production operating costs to more competitive levels, resulting in a significant decline in industry flight hours.
CHC's operating margins in the North Sea and international markets have been notably better than its main competitor and were well managed through the industry trough in 1999, the industry cost initiatives, and the switching of some major contracts.
By eliminating corporate and U.K sector overhead at Helicopter Services Group, as well as other more moderate cost synergies, CHC is expected to improve the operating margins of the consolidated company to the high-teen area in fiscal 2001.
Positive operating results are offset by the company's high fixed obligations, and the financial profile is currently weak for the rating category.
Although the company has been actively selling off noncore divisions and paying down debt, the lease-adjusted debt level (capitalizing the company's lease payments) is currently more than 1.0 times (x) revenues. For fiscal 2001 the company's total lease-adjusted debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) will likely be about 4.5x. EBITDA interest coverage for fiscal 2001 is expected to be above 2.2x.
Capital spending requirements are very modest--given a static fleet count--as all maintenance is expensed. Accordingly, the company is expected to be cash flow positive after capital spending through the next few years.
OUTLOOK: STABLE
Standard & Poor's expects the company to reduce its leverage to maintain the rating. This will most likely occur through debt reduction, either by application of internally generated cash or from asset sales. The industry environment is moderately positive through the next few years, and the company is also expected to maintain or improve its current operating performance, Standard & Poor's said.
S&P raises CHC Helicopter corp credit rating
(UPDATE: Press release provided by Standard & Poor's)
NEW YORK, June 14 - Standard & Poor's today assigned its single-'B' rating to CHC Helicopter Corp.'s euro (Eur) 125 million senior subordinated notes due 2007.
Standard & Poor's also raised its corporate credit rating on CHC to double-'B'-minus from single-'B'-plus.
The outlook is stable.
The notes are rated two notches lower than the corporate credit rating, reflecting their subordination to the senior secured debt. The note proceeds will be used primarily to refinance part of CHC's current bank facility. The current bank facility was arranged as part of CHC's C$542 million acquisition of Helicopter Services Group ASA in 1999.
The ratings are based on CHC's position as one of two global heavy helicopter operators in the oil services industry, its relations and contracts with major oil companies, and its efficient operations and fleet management. The ratings are tempered by the company's high debt load and its relatively high level of fixed-lease obligations.
CHC is the largest helicopter service company in the world, and the largest commercial operator of heavy airframes (20 or more passengers). Consolidated with Helicopter Services Group, the company has a worldwide fleet of 320 aircraft, of which about 60% by value are classified as heavy (as of Jan. 31, 2000).
Almost two-thirds of CHC's revenues currently come from the oil and gas industry, with a particular concentration in the U.K. and Norwegian sectors of the North Sea. The company has bases on six continents and serves most of the international offshore activity areas with the exception of the Gulf of Mexico. In the oil and gas sectors in which CHC operates, helicopters are typically chartered on longer-term contracts.
Although the nature of these contracts provides more stability than spot contracts, they remain susceptible to usage volume (and thus to the cyclicality of exploration and production activities) and are competitively bid. The consolidation in the helicopter services industry--the industry is now oligopolistic in all major markets--may help stabilise the pricing and the customer relationships in the oil and gas segment. Almost 70% of CHC's helicopter revenues in the next year will come from longer-term contracts.
Helicopter service companies are more stable than other service providers in the oil industry, because helicopters operate throughout the exploration and production cycle, have demand outside the oil industry, and can be moved to other markets and regions.
In addition, CHC derives almost 80% of its oil and gas revenues from flights to production platforms, a more stable sector than exploration rigs. Nonetheless, cyclicality does affect helicopter demand, and surplus capacity can drive down rates while a drop in utilization rates can affect profitability.
Standard & Poor's expects the North Sea sectors will increase exploration and production drilling (as capital spending increases in the region) and maintain current production levels in the next few years.
Longer term, this mature region has to develop its deep sea and gas reserves (and markets), and likely address its high tax structure, to maintain current production volumes. Cost initiatives in the U.K. sector already have reduced exploration and production operating costs to more competitive levels, resulting in a significant decline in industry flight hours.
CHC's operating margins in the North Sea and international markets have been notably better than its main competitor and were well managed through the industry trough in 1999, the industry cost initiatives, and the switching of some major contracts.
By eliminating corporate and U.K sector overhead at Helicopter Services Group, as well as other more moderate cost synergies, CHC is expected to improve the operating margins of the consolidated company to the high-teen area in fiscal 2001.
Positive operating results are offset by the company's high fixed obligations, and the financial profile is currently weak for the rating category.
Although the company has been actively selling off noncore divisions and paying down debt, the lease-adjusted debt level (capitalizing the company's lease payments) is currently more than 1.0 times (x) revenues. For fiscal 2001 the company's total lease-adjusted debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) will likely be about 4.5x. EBITDA interest coverage for fiscal 2001 is expected to be above 2.2x.
Capital spending requirements are very modest--given a static fleet count--as all maintenance is expensed. Accordingly, the company is expected to be cash flow positive after capital spending through the next few years.
OUTLOOK: STABLE
Standard & Poor's expects the company to reduce its leverage to maintain the rating. This will most likely occur through debt reduction, either by application of internally generated cash or from asset sales. The industry environment is moderately positive through the next few years, and the company is also expected to maintain or improve its current operating performance, Standard & Poor's said.
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Wednesday July 5, 12:53 pm Eastern Time
Company Press Release
SOURCE: CHC Helicopter Corporation
CHC Helicopter Corporation Completes Private Debt Offering
ST. JOHN'S, NF, July 5 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (NASDAQ: FLYA - news; TSE: FLY.A - news and FLY.B - news) announced today that it has completed the sale of 145,000,000 Euros of Senior Subordinated Notes due 2007 (the "Notes''). The Notes bear interest at 11 3/4% and were issued at 98.825% of their face amount for an effective yield of 12%. The offering was made by means of a private offering memorandum to qualified institutional buyers and non-U.S. persons.
Proceeds from the offering will be used to repay part of CHC's currently outstanding bank credit facility and certain fees and expenses related to the financings incurred as part of CHC's acquisition of Helicopter Services Group ASA in 1999.
The Notes have not been registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The Notes may not be offered or sold in Canada except pursuant to transactions that are exempt from the prospectus requirements of applicable provincial securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Notes referenced above in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
SOURCE: CHC Helicopter Corporation
Company Press Release
SOURCE: CHC Helicopter Corporation
CHC Helicopter Corporation Completes Private Debt Offering
ST. JOHN'S, NF, July 5 /CNW-PRN/ - CHC Helicopter Corporation ("CHC'') (NASDAQ: FLYA - news; TSE: FLY.A - news and FLY.B - news) announced today that it has completed the sale of 145,000,000 Euros of Senior Subordinated Notes due 2007 (the "Notes''). The Notes bear interest at 11 3/4% and were issued at 98.825% of their face amount for an effective yield of 12%. The offering was made by means of a private offering memorandum to qualified institutional buyers and non-U.S. persons.
Proceeds from the offering will be used to repay part of CHC's currently outstanding bank credit facility and certain fees and expenses related to the financings incurred as part of CHC's acquisition of Helicopter Services Group ASA in 1999.
The Notes have not been registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The Notes may not be offered or sold in Canada except pursuant to transactions that are exempt from the prospectus requirements of applicable provincial securities laws.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the Notes referenced above in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
SOURCE: CHC Helicopter Corporation
