PHI gets tenders, consents for 97.52% of 8 5/8% notes by early date

By Marisa Wong

Madison, Wis., March 17 - PHI, Inc. announced that it had received tenders and consents from holders of 97.52% of the outstanding principal amount of its 8 5/8% senior notes due 2018 as of midnight ET on March 14, the early tender deadline of its tender offer and consent solicitation that began on March 3.

On Monday PHI settled all $292.6 million principal amount of the early tendered 8 5/8% notes and executed a supplemental indenture to the indenture governing the 8 5/8% notes to eliminate most of the restrictive covenants and some events of default.

PHI's obligation to accept for purchase notes tendered under the offer was conditioned upon, among other things, its previously announced sale of $500 million 5¼% senior notes due 2019. The company completed its private offering of the 5¼% notes on Monday, and a portion of the proceeds was used to purchase the early tendered 8 5/8% notes, according to a press release.

For each $1,000 principal amount of 8 5/8% notes, the company will pay $1,089.32, which includes an early tender payment of $30.00 for notes tendered by the early deadline.

Holders who tender their notes after the early deadline but before the expiration of the offer will receive the tender offer consideration of $1,059.32 per $1,000 principal amount.

PHI will also pay accrued interest.

The offer will end at midnight ET on March 28. Final settlement is slated for March 31.

The company has called for redemption all of the 8 5/8% notes that remain outstanding following the tender offer. The outstanding notes will be redeemed at a make-whole redemption price plus accrued interest to the redemption date, which is expected to be April 16.

UBS Investment Bank (888 719-4210 or 203 719-4210) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (866 470-3700 or bank and brokers 212 430-3774) is the information agent and depositary.

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

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