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