Bristow unit gets $230 million of 24 term loans at one-month Libor plus 500 bps

By Susanna Moon

Chicago, July 18 – Bristow Group Inc. subsidiary Bristow Equipment Leasing Ltd. has lined up $230 million of commitments for 24 term loans.

The company has entered into a credit agreement Monday with PK AirFinance Sarl as agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest will be one-month Libor plus 500 basis points.

The term loans are expected to fund by Aug. 30.

The borrower is required to repay each term loan on an annuity basis, payable monthly in arrears starting on the seventh month with a final payment of 53% of the initial amount due on the 70th month.

The obligations will be guaranteed by the company and will be secured by the pledged aircraft, initially consisting of 24 helicopters, together with the engines and other equipment and parts that may from time to time be installed on the pledged aircraft and other related assets.

Proceeds will be used to repay part of the outstanding term loan debt of the company under its amended revolving credit and term loan agreement dated Nov. 22, 2010 with SunTrust Bank as administrative agent and the term loan credit agreement dated Nov. 5, 2015 with SunTrust Bank as administrative agent, as well as for general corporate purposes.

The term loans require mandatory prepayments in connection with some terminations of intercompany lease and sublease agreements for the pledged aircraft, events resulting in loss of the pledged aircraft and changes in laws causing loan documents and security documents to be unenforceable or unobservable. Other than that, the borrower is not permitted to prepay the term loans before June 30, 2019. Some of the mandatory prepayments and voluntary prepayments will require prepayment fees as follows: 4.5% of par before June 30, 2019; 3.5% between June 29, 2019 and June 30, 2020; 2.5% between June 29, 2020 and June 30, 2021; 1.5% between June 29, 2021 and June 30 2022; and none after June 29, 2022.

Bristow Group is a Houston-based company that provides helicopter services to the offshore energy industry.

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