Erickson Rights Offering Announced


According to documents filed with the SEC, Erickson has agreed to solicit participation in a rights offering which contemplates a new money investment (“Rights Offering” of up to $30.0 million by certain eligible holders of the Company’s 8.25% Second Priority Senior Secured Notes due 2020 (“Eligible Offerees”).

Eligible Offerees shall be offered rights in an amount not to exceed such offeree’s pro rata share of the rights offering amount based upon a fraction (expressed as a percentage) the numerator of which is the principal amount of its allowed existing second lien claims and the denominator of which is the principal amount of all allowed existing second lien claims, to purchase (i) in respect of the first $20.0 million of the Rights Offering, shares of reorganized common stock of the Company, at a per share purchase price at an implied 10% discount to the Plan equity value and (ii) in respect of any amount in excess of $20.0 million, up to $30.0 million, a combination of new common stock, at the same discount to the Plan equity value, and term loans (“New Second Lien Loans”) issued under a new second lien credit facility, at par, on the terms and conditions set forth in the Company’s Plan and the backstop agreement.

Prior to the Plan’s effective date, holders of at least 66-2/3% of the backstop commitments under the backstop agreement and the Debtors will determine the rights offering amount, the extent to which Eligible Offerees receive new common stock and/or new second lien loans for any amounts in excess of $20.0 million, the purchase price and the number of shares of new common stock to be received in the Rights Offering.

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