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.