HOUSTON - Bristow Group Inc. (NYSE:VTOL), a leading provider of vertical flight solutions with a market capitalization of $1.16 billion, announced Wednesday it has priced an upsized private offering of $500 million in senior secured notes due 2033. The notes will carry an interest rate of 6.75% and will be issued at par.
The offering, which is expected to close on January 26, 2026, will be made to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S of the Securities Act of 1933.
The notes will mature on February 1, 2033, with interest paid semi-annually. They will be guaranteed by Bristow's existing material wholly owned domestic subsidiaries and certain foreign subsidiaries. The notes will be secured by first-priority liens on collateral including approximately 119 pledged aircraft and other tangible and intangible assets of the company and guarantors. InvestingPro data shows Bristow maintains a healthy current ratio of 1.91, indicating its liquid assets exceed short-term obligations.
Bristow plans to use a portion of the net proceeds to redeem its 6.875% Senior Secured Notes due 2028 in full on March 1, 2026. Any remaining proceeds will be directed toward general corporate purposes. This refinancing comes as the company manages a total debt of $924.61 million as of the most recent quarter.
The company provides aviation services primarily to offshore energy companies and government entities, including personnel transportation, search and rescue operations, medevac, fixed-wing transportation, and unmanned systems services. With annual revenue of $1.47 billion, Bristow currently serves customers across multiple countries including Australia, Brazil, Canada, the United Kingdom, and the United States. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with shares priced at $40.34, near its 52-week high of $42.89.
The notes offering has not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements, according to the company's press release statement. The company trades at a P/E ratio of 8.37 and has been profitable over the last twelve months.
In other recent news, Bristow Group Inc. reported a notable earnings performance for the third quarter of 2025, with earnings per share reaching $1.72, significantly exceeding the forecasted $0.95. However, the company faced a revenue shortfall, generating $386.3 million, which was below expectations by 3.42%. Additionally, Bristow Group has launched a $400 million offering of senior secured notes due in 2033, secured by first-priority liens on approximately 70 pledged aircraft and other assets. Fitch Ratings assigned Bristow Group a 'BB-' Long-Term Issuer Default Rating with a Stable Outlook, while the company's secured notes received a 'BB+' rating with a 'RR2' Recovery Rating. Texas Capital Securities initiated coverage on Bristow Group with a Buy rating and set a price target of $52.00. These developments highlight Bristow's strategic financial moves and market positioning.