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North America Newsletter 4 November

North America Newsletter 4 November

Bristow Group Successfully Emerges From Chapter 11

Bristow Group announced that it has emerged from Chapter 11 bankruptcy protection, successfully completing its debt restructuring process and implementing the Chapter 11 reorganization plan confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on October 4, 2019. Bristow has reduced its debt significantly and is emerging with $535 million of new capital, which it believes will provide significant financial flexibility to support its global operations. The Company also announced it has amended and reinstated its $75 million term loan as of its emergence. L. Don Miller, President and Chief Executive Officer of Bristow, said, “We are beginning this new chapter of Bristow’s proud history having achieved our key restructuring goals: a stronger balance sheet and improved liquidity that will enable us to continue providing industry-leading service to our global client base. I would like to commend our global team for its unwavering focus on delivering safe and efficient service to our clients and passengers as we navigated the restructuring process.”

Delta’s first new concourse at LaGuardia opens; a milestone in $8B airport rebuild

Delta unveiled its first new concourse at the airport, a 105,000-square-foot showpiece that signals the airline’s exciting future in New York. Delta’s Terminal C, marking a major milestone in the $8 billion transformation of the airport. The opening of the first new concourse and seven gates at Delta’s new terminal, on the far eastern side of the airport, was celebrated at an event attended by New York Gov. Andrew Cuomo, Queens Borough President Melinda Katz, and representatives of the Port Authority of New York and New Jersey. Delta CEO Ed Bastian said, “Two years ago, we set out to build a state-of-the-art facility at LaGuardia Airport, an airport that our customers and the people of New York deserve. Thanks to the commitment and hard work of the Delta team and our many partners, today marks the beginning of a new era for millions of Delta customers at LaGuardia. The excitement that is building here is palpable and contagious, and we are already looking ahead to many more milestones to come.”

Moody’s rates JetBlue’s 2019-1 EETC: Class AA at Aa3, Class A at A2

Moody’s has assigned ratings to JetBlue Pass Through Certificates, Series 2019-1 that the company announced earlier today: $588.685 million Class AA with a legal final maturity of November 15, 2033 at Aa3 and $183.570 million Class A with a legal final maturity of November 15, 2029 at A2. The final scheduled distribution dates precede the respective legal final maturity dates by 18 months. The Certificates’ proceeds will finance 25 Airbus A321-200ceo (current engine option) narrow-body aircraft delivered new to JetBlue between February 2017 and December 2018.

Spirit AeroSystems to Acquire Select Assets Of Bombardier Aerostructures and Aftermarket Services Business

Spirit AeroSystems announced it has entered into a definitive agreement to acquire select assets of Bombardier aerostructures and aftermarket services businesses in Belfast, Northern Ireland (known as Short Brothers); Casablanca, Morocco; and Dallas, United States, for cash consideration of $500 million. In addition, Spirit AeroSystems will assume approximately $300 million in net pension liabilities, and approximately $290 million of government grant repayment obligations, for a total enterprise valuation of $1,090 million, which equals 10 times the 2019 estimated Adjusted EBITDA of the acquired business. At closing, Spirit AeroSystems will pay $500 million to Bombardier and will make a cash contribution of approximately $130 million towards the pension liability, for total cash at closing of $630 million.

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