PHI offers senior secured notes due 2023

PHI, Inc. (The Nasdaq Select Global Market: PHII) (Nasdaq: PHIIK) has announced that it is proposing, to place privately up to a $500 million aggregate principal amount of senior secured notes due 2023, the company said.

Each of PHI´s existing and future domestic restricted subsidiaries are expected to guarantee the 2023 Notes. The actual amount of the 2023 Notes, if any, sold by PHI in connection with the Debt Offering will depend on market conditions. The 2023 Notes, if issued, would be secured by first priority liens, subject to certain customary exceptions, on mortgages on its and its guarantor subsidiaries´ oil and gas aircraft registered in the United States, Canada and Australia, and a pledge of all of the equity interests in its wholly-owned air medical subsidiary and a pledge of 66% of the equity interests in its wholly owned foreign affiliate that conducts its Asia-Pacific operations.

PHI intends to use the net proceeds from the Debt Offering, together with borrowings under a new term loan that it expects to arrange and cash on hand to complete a concurrently announced cash tender offer and consent solicitation to purchase any and all of the $500 million aggregate principal amount of PHI´s outstanding 5.25% Senior Notes due 2019 and redeem any 2019 Notes that remain outstanding following the expiration date of the Tender Transactions. The company also intends to use proceeds to fully repay and terminate PHI´s current revolving credit facility, which matures on March 7, 2019.

PHI, Inc. is one of the world´s leading helicopter services companies, operating over 240 aircraft in over 70 locations around the world.