CHC cancelled preferred-shares rights offering

CHC Group Ltd., the parent company of CHC Helicopter, today announced that it has cancelled 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 upon receiving at least $50 million in total demand from the company’s shareholders. Because total commitments at the time of the offering’s 5 p.m. EST Monday expiration were less than $50 million, the rights offering will not be completed.

Instead, consistent with terms of CHC’s Aug. 21 private placement with Clayton, Dubilier & Rice (CD&R), CD&R will purchase 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 expected to occur on Dec. 15.

Source and image: CHC