Erickson Air-Crane majority owner to buy shares in the IPO - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)
Subscriber Content Preview | Request a free trialSearch  
  Go

Telecom, Media & Technology

Print  |  Share  |  Reprint

Erickson Air-Crane majority owner to buy shares in the IPO

by Adam Steinhauer  |  Published April 10, 2012 at 6:53 AM
The private equity owners of Erickson Air-Crane Inc. have changed plans yet again. ZM Equity Partners LLC unveiled plans to buy shares in the company's proposed initial public offering, set to occur this week. Initially the majority shareholder looked to be selling shares of the heavy-lift helicopter maker in the IPO, then changed its mind about selling. 

ZM Equity said Monday, April 9, that it may buy between 750,000 to 1.25 million shares in the offering. With 1.25 million more shares, ZM would hold 63% of the common stock after the IPO. Portland, Ore.-based Erickson plans to raise almost $50 million via a 4.8 million share offering, priced at between $8 and $9 apiece. This was reduced from the initial 5.4 million shares to be offered at between $13 and $15 per share, or up to $93 million in proceeds. Its private equity owners have decided not to sell shares for a greenshoe option, though the company will. Instead, underwriters can buy as many as 720,000 shares from the company. 

Erickson plans to use proceeds to pay down a portion of its $51.8 million it has outstanding on its revolving credit facility. Net proceeds at the midrange $8.50 per share price should be about $33.5 million. At $8.50 a share, ZM's stake would be worth $51.5 million. If it buys 1.25 million shares, it will have invested $103.7 million since 2007. 
Share:
Tags: Erickson Air-Crane Inc. | IPO | PE

Meet the journalists

Adam Steinhauer

Editor in Chief, West Coast Operations



Movers & Shakers

Launch Movers and shakers slideshow

KeyBank hired Mark R. Danahy, former head of originations at Citibank, to expand its residential mortgage operations. For other updates launch today's Movers & shakers slideshow.

Video

Chicago's DHR is still hopeful of a deal with troubled CTPartners

Privately held DHR International Inc. remains intent on buying CTPartners Executive Search Inc. (CTP), despite the CEO of the target recently turning down an offer valued at $61 million. Adding to the uncertainty is a New York Post report detailing alleged sexual discrimination against CTPartners employees. More video

Sectors