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CHC Group (OTCQX: HELIF), parent of CHC Helicopter SA, the world’s largest commercial helicopter operator for the offshore oil and gas industry, decided not to make an interest payment of $46 million due on its notes maturing in 2020, while it reviews all strategic alternatives for restructuring its $1 billion debt load. CHC is a portfolio company of private equity firms First Reserve, and Clayton, Dubilier & Rice. Seabury Advisors, PJT Partners and CDG Group were retained as the company’s financial advisors, and Weil, Gotshal & Manges LLP and Debevoise & Plimpton LLP are serving as its legal advisors. The company reported revenue of $333 million during its fiscal 2016 third quarter (ended January 31, 2016) with total liquidity of $377 million, and a leverage ratio of 5.2x. The company has a 30-day grace period after the interest payment due date to cure a default for nonpayment. On April 15, the company’s shares closed at $0.89, giving it a market value of $2.42 million. On February 1, 2016 CHC was delisted from the NYSE, because the company had fallen below the NYSE’s continued listing standard requiring listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15,000,000. On February 2, 2016, CHC began trading on the OTCQX Best Market. In 1987 CHC became a public company listed on the Toronto Stock Exchange and later the New York Stock Exchange. In 1994 CHC merged with British International Helicopters and in 1999 acquired Norway’s Helicopter Services Group —both of which also trace their heritage to 1947. CHC also acquired Lloyd Helicopters, one of Australia’s largest operators in 1999. In February 2008 CHC was acquired and taken private by Greenwich, Conn.-based private equity firm First Reserve, for CAD$3.7 billion ($3.5 billion). On January 16, 2014 CHC raised $310 million in an IPO of 31 million shares priced at $10 per share, with First Reserve Corporation remaining a significant shareholder. In 2014, private equity firm Clayton, Dubilier & Rice LLC invested $600 million in convertible preferred stock in CHC. “First Reserve Corp. made its name as one of the earliest and most successful private-equity firms in the oil patch,” said The Wall Street Journal reporter Ryan Dezember, “but a steep drop in energy prices…, combined with an ill-fated move toward investing upward of $1 billion in individual companies, has set the firm back on its heels.” “The biggest mistake we made was getting out of our core areas and doing these bigger deals,” said John Hill, First Reserve’s vice chairman. First Reserve was founded in 1983 by vice chairman John Hill, a former Energy Department undersecretary during the Ford administration, and William Macaulay, its chairman and CEO. Both had previously co-founded private equity firm Meridien Capital. first Reserve is the oldest and largest private equity and infrastructure investment firm exclusively focused on the energy sector. The Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. First Reserve has completed more than 550 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm’s history. Its portfolio companies operate on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. Clayton, Dubilier & Rice, founded in 1978, is a private equity firm with an investment strategy predicated on producing financial returns through building stronger, more profitable businesses. CD&R manages approximately $21 billion on behalf of its investors and since inception has acquired 62 businesses with an aggregate transaction value of more than $90 billion. The firm is headquartered in New York City, and has an office in London. CHC Group Ltd. provides commercial helicopter services to the offshore oil and gas industry worldwide. The company operates through two segments, Helicopter Services and Heli-One. Its helicopters are primarily used to facilitate long-distance crew changes on offshore production facilities and drilling rigs. The company also offers search and rescue, and emergency medical services to government agencies. In addition, it provides maintenance, repair, and overhaul services, including maintenance outsourcing solutions, parts sales and distribution, engineering services, design services, and logistics support for heavy structural repairs, as well as for maintaining, overhauling, and testing helicopters and helicopter components. As of April 30, 2015, CHC operated a fleet of approximately heavy and medium commercial helicopters serving the offshore oil and gas industry with 231 helicopters through a network of approximately 70 bases with operations in was formerly approximately 20 countries. CHC’s major international operating units are based in Australia, Brazil, Ireland, the Netherlands, Norway, and the United Kingdom, and has long-term working relationships with most of the major oil and gas companies. The company known as FR Horizon Holding (Cayman) Inc. and changed its name to CHC Group Ltd. in September 2013. CHC Group Ltd. was founded in 1987 and is based in George Town, Cayman Islands and Richmond, British Columbia, Canada.]]>