First Reserve plans $529m IPO for CHC Helicopter

Eurocopter EC225 flying over St. John's Newfoundland coast in Canada (Credit: Paul Daly)

CHC Group plans to raise $529 million in an initial public offering.

The Eurocopter EC225 is one of many aircraft operated by CHC Helicopter (Photo: Paul Daly).

CHC Group Ltd., the world’s largest commercial operator of medium and heavy helicopters, has announced that it expects to raise up to $529 million in an initial public offering.

The company will offer 29.4 million shares, priced between $16 and $18 each. CHC says it will use the funds to “repay certain CHC Helicopter debt and for general corporate purposes.”

CHC Group, headquartered in Canada, was acquired by First Reserve, the biggest private equity investor in the energy industry, in a 2008 deal worth $1.5 billion.

The company plans to list on the New York Stock Exchange under the symbol “HELI” and the public offering will see First Reserve’s stake in CHC drop to 61.3 per cent, valuing the company at $1.37 billion at the top end of the expected price range.

JP Morgan, Barclays and UBS Investment Bank are lead underwriters for the offering.

CHC operates more than 250 heavy and medium helicopters that are used to transport workers to offshore drilling rigs and to carry-out search and rescue missions. Its fleet includes numerous helicopter models manufactured by AgustaWestland, Eurocopter (now Airbus Helicopters) and Sikorsky.

In December 2013, CHC Helicopter agreed a helicopter leasing deal valued at over $200 million with Waypoint Leasing for 13 medium and heavy helicopters, including the Sikorsky S-92 and AgustaWestland AW139 aircraft.