PHI wraps tender offer; no 8 5/8% notes tendered after early deadline

By Marisa Wong

Madison, Wis., March 31 - PHI, Inc. announced that it had received tenders from holders of $292,571,000, or 97.52%, of the outstanding principal amount of its 8 5/8% senior notes due 2018 as of midnight ET on March 28, the expiration of its tender offer.

All $292,571,000 principal amount was tendered before the early tender deadline of midnight ET on March 14, as previously reported. No additional notes were tendered after the early deadline, the company said.

The early tendered notes were purchased on March 17.

Currently, $7,429,000 principal amount of the notes remains outstanding.

As announced on March 17, the company will redeem all of the remaining notes at a make-whole redemption price plus accrued interest to the redemption date, which is expected to be April 16.

The tender offer and a consent solicitation began on March 3.

PHI solicited consents to eliminate most of the restrictive covenants and some events of default from the indenture governing the 8 5/8% notes. The company executed a supplemental indenture effecting the changes when it settled the early tendered notes.

For each $1,000 principal amount, the company paid $1,089.32, which included an early tender payment of $30.00 for notes tendered by the early deadline, plus accrued interest.

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 March 17, and a portion of the proceeds was used to purchase the early tendered 8 5/8% notes, according to a prior press release.

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