Funding
The coast guard. Photo: Marc O’Sullivan
Bristow Group, the US-listed helicopter giant, took out a €100m loan backed by the UK government to support its search and rescue contract with the Irish Coast Guard.
Last week, Jennifer Whalen, Bristow’s chief financial officer, discussed the loan during a call with analysts covering the company’s second-quarter results. She said it was achieved with “very attractive rates”.
The loan was provided to one of Bristow’s UK subsidiaries, Bristow Leasing Limited, with NatWest, a UK-based bank, as the original lender. UK Export Finance, the UK government’s export credit agency, is guaranteeing 80pc of the facility.
Bristow said in a statement that proceeds from the financing would be used to support its capital commitments for the “next generation of search and rescue operations in Ireland”.
Bristow’s obligations will be secured by five new-delivery Leonardo AW189 search and rescue-configured helicopters. During the call, Christopher Bradshaw, CEO of Bristow, said the new helicopters would be “delivered this year and next”.
The UK Export Fund debt has a two-year availability period followed by a five-year term.
It is expected to fund during 2024, subject to delivery of the new helicopters.
Bradshaw said the Irish Coast Guard contract would begin later this year.
“It’s a large contract with a long transition period, so we’ll begin the transition in October of this year. It won’t be completed with the final base in Ireland until the middle of 2025. “But a good component of the improvement in 2025 EBITDA is attributable to Ireland on the government services side.”
Bristow was awarded the €800m contract for the Irish Coast Guard air search and rescue service last year.
The American group was chosen over the service’s existing provider, CHC Ireland, for the significant 10-year contract.
