PHI accepts $184.8 million 9 3/8% notes in initial tender settlement

By Jennifer Chiou

New York, April 12 - PHI, Inc. said it accepted tenders from holders of $184.8 million of its $200 million of 9 3/8% senior notes due 2009 who tendered their securities by the consent deadline.

The company also said it executed a supplemental indenture.

By the consent deadline of 5 p.m. ET on April 6, the company said, holders had tendered with consents more than 90% of the securities, the necessary consents to amend the note indenture.

The requirement to buy the notes is subject to conditions including completion of financing that raises at least $219 million.

PHI announced the tender on March 24 and said it was also soliciting consents for proposed amendments to the note indenture to eliminate most of the restrictive covenants and events of default and to shorten the minimum redemption notice period to five days from 30 days.

The company needed consents from holders of a majority of the notes.

The offer expires at 9 a.m. ET on April 24, unless extended.

For each $1,000 principal amount of notes, the company said it will pay $1,048.88 plus accrued interest up to but not including the payment date. The payout includes a $2.00 consent payment for those who tender their securities before the consent deadline.

UBS Investment Bank (888 722-9555 x4210 or call collect 203 719-4210) is the dealer manager and D.F. King & Co., Inc. (888 567-1626 or call collect 212 269-5550) is the information agent.

Lafayette, La.-based PHI provides helicopter transportation and related services to the oil and gas industry and air medical industry.

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