Bristow plans $13.21 million; Atlas to get $50.1 million; Turbo wraps £3 million

By Devika Patel

Knoxville, Tenn., June 19 - Bristow Group Inc. said it will raise $13.21 million by selling common stock to Caledonia Investments plc, Atlas Pipeline Partners, LP will sell $50.1 million of its common units in order to terminate certain crude oil derivatives agreements and increase both its distribution coverage and its distributable cash flow per unit and Turbo Power Systems Inc. raised £3 million by selling a convertible loan note.

Bristow to raise $13.21 million

Bristow said it has a committment to sell $13.21 million of its common shares, priced at $46.87 apiece.

The company will sell the 281,900 shares to Caledonia Investments.

Proceeds will be used to fund the purchase of additional aircraft and for general corporate purchases.

"We are constantly buying new helicopters, which are used by clients to fly personnel out to drilling rigs," Bristow's treasurer Joe Baj told Prospect News. "The helicopter purchases are a necessary part of providing safe and reliable service."

Houston-based Bristow is a provider of helicopter service for offshore oil production. Its shares (NYSE: BRS) rose 1.4%, or $0.68, to close at $49.12 on Thursday.

Atlas Pipeline plans $50.1 million

Atlas Pipeline Partners said in a prospectus supplement filed Thursday with the Securities and Exchange Commission that it intends to raise $50.1 million by selling its common units at $36.0192 per unit to Atlas America, Inc. and Atlas Pipeline Holdings, LP. The company had announced the deal on Wednesday.

Atlas America will buy $40.1 million of the units, while the remaining $10 million in units will be sold to Atlas Pipeline Holdings.

Proceeds will be used to terminate certain crude oil derivatives agreements that are associated with the ethane and propane portion of Atlas Pipeline's natural gas liquids volume.

The partnership said in a June 16 press release that it "intends to terminate approximately 86% of its crude oil derivative contracts that had been entered into as a proxy hedge for the prices it receives for the ethane and propane portion of its natural gas liquids equity volume ... As a result of terminating these contracts, Atlas Pipeline expects that its net revenue and, as a result, its distributable cash flow per unit, will increase in both the second half of 2008 and for the full year 2009."

The release concluded that "as a result of these plans and assuming current commodity prices, Atlas Pipeline anticipates an increase in both its distribution coverage and in its distributable cash flow per unit."

The Moon Township, Pa., natural gas pipeline operating company's shares (NYSE: APL) climbed 3.73%, or $1.40, to close at $38.92 on Thursday. Its shares closed at $37.52 on Wednesday.

Turbo sells £3 million

Turbo Power Systems said it raised £3 million through the sale of a convertible loan note.

The three-year note matures June 30, 2011. It allows for an initial drawdown of £1.5 million with further tranches of £750,000 at the company's discretion. The first repayment is due nine months after the initial drawdown.

Interest will be calculated monthly at 1.17%, for an annualized rate of 15%.

The note is convertible at any time into either the company's common shares or subsidiary Turbo Power Systems Ltd.'s A shares at 4p per share.

The investors also received a warrant to acquire, in either the company's common shares or subsidiary Turbo Power Systems Ltd.'s A shares, up to 15% of the note's value at 3.5p per share. The warrant is exercisable for 10 years after the drawdown.

Proceeds will be used for general working capital purposes, strengthening the company's balance sheet and financing new and existing product developments.

"I am delighted that we have secured this additional funding, which will bring added stability and working capital to Turbo Power Systems and support the development of our products and marketing activities," company chairman Graham Thornton said in a press release.

"The board remains confident for the future prospects of the company and looks forward to providing a further update to shareholders at the time the Q2 results are released in August," Thornton continued.

The Calgary, Alta.-based company is a product developer for power generation and power conditioning. Its shares (Toronto: TPS) went up 6.67% Thursday, or C$0.005, to close at C$0.08.

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