Author Topic: BRS - Bristow Group Senior Unsecured 6.25% 2022  (Read 19103 times)

maybe4less

  • Full Member
  • ***
  • Posts: 185
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #40 on: May 31, 2017, 07:17:33 PM »
The H225s are still grounded (now a year) after the accidents at now bankrupt CHC last year but there is a chance UK and Norwegian authorities will re-allow them soon. Investigation has been finished end of April which was a condition and Airbus has some working remedies. European authorities have already re-allowed last year but BRS depends on the former two. That should help somewhat. There might also be some OEM recoveries.  The secured financing provides runway but ultimately an oil price story.

I haven't spoken to anyone in the industry who believes that Western clients are ever going to want to risk flying in the H225s again. There may be some places in Asia (I believe they may already be flying there) or Africa that will fly them, but I would venture that they do not fly, for O&G purposes at least, in the Americas or Europe again.

IMO, I'm not so sure having them fly in the West would be so good for Bristow and others in the industry. Not having the H225s has made the market for S92s/AW189s and larger mediums (like the AW139s) pretty tight. I wouldn't really want a bunch of new heavy supply coming online from the H225s if I were running these companies at this point in the cycle. There will almost definitely be significant OEM recoveries, so these birds will not be total losses.


arcube

  • Full Member
  • ***
  • Posts: 162
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #41 on: November 12, 2018, 09:09:31 AM »
Bristow Group To Combine With Columbia Helicopters In A $560 Million Transaction, Creating A Leading Global Diversified Industrial Aviation Solutions Company
Download PDF Download PDF
- Complementary businesses with shared focus on world-class safety, reliability and client service and solutions;
- Strengthens Bristow's operational and consolidated financial profile, is accretive to adjusted EBITDA and cash flow, significantly reduces consolidated net leverage and adds substantial contracted revenue;
- Expands and diversifies fleet and addressable market, broadens utilization of combined fleet and AOCs; and drives maintenance repair and overhaul (MRO) savings;
- Conference call November 9, 2018 at 8:00 am Eastern Time

http://ir.bristowgroup.com/phoenix.zhtml?c=91226&p=irol-newsArticle&ID=2376473



Jurgis

  • Hero Member
  • *****
  • Posts: 4357
    • Porfolio
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #42 on: November 29, 2018, 02:19:02 PM »
Thanks arcube for posting the acquisition announcement.
This has crashed a lot after announcement:

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?symbol=BRS3910429&ticker=C608588

I sold and probably won't get back into. Just bumping FYI if someone wants to do DD for potential 2X% yield.


Thanks rishig for original idea and work.  8)
« Last Edit: November 29, 2018, 02:21:14 PM by Jurgis »
"Before you can be rich, you must be poor." - Nef Anyo
--------------------------------------------------------------------
"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"

Nell-e

  • Jr. Member
  • **
  • Posts: 81
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #43 on: April 04, 2019, 01:22:57 PM »
Has anyone been following this story?  Bonds now trade at less than $19.

Thanks

Jurgis

  • Hero Member
  • *****
  • Posts: 4357
    • Porfolio
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #44 on: April 04, 2019, 01:38:17 PM »
From brief search it looks like they could not file 10Q, which would have caused default. They got waiver from lenders to file by April 15th, but still have not filed. They may get another extension or just default.

There are also resignations, exec/director changes and all that jazz.

IMO at this time this is for deeply knowledgeable distressed debt investors only.
« Last Edit: April 04, 2019, 01:40:00 PM by Jurgis »
"Before you can be rich, you must be poor." - Nef Anyo
--------------------------------------------------------------------
"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"

Nell-e

  • Jr. Member
  • **
  • Posts: 81
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #45 on: April 04, 2019, 01:52:12 PM »
Thanks for the response.  I'm not a bond guy so hopefully this isn't too stupid of a question:  What's the worst case scenario?

Even if the company goes bankrupt, the bonds won't be worth zero (I don't think) and if you can get 20 cents on the dollar you'll still come out ahead. 

How long does the bankruptcy process usually take?

rogermunibond

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 742
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #46 on: April 04, 2019, 02:34:00 PM »
It's the liquidation value of their fleet less any liabilities that are ahead of the seniors.

Jurgis

  • Hero Member
  • *****
  • Posts: 4357
    • Porfolio
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #47 on: April 04, 2019, 02:34:25 PM »
You could get less than 20 cents on the dollar.  :)

Seriously.

There was a good post couple months ago which had a "test" if you should invest in distressed bonds. It listed a bunch of acronyms and terms that if you don't know, then you should not. I tried to search for it, but by CoBF-search-fu is not good enough.

Seriously, you will get screwed by all the debt holders that are senior (ahead) of you. And you may be screwed by debt and equity holders that are junior to you just because they are institutions and they are allowed inside BK process and you are not.

It's possible that you will be in the right debt class and will get good return. It's even possible they won't default. You probably would have to do a deep DD about the probabilities of these ... as well as who's in front of you. I'd guess that most of BRS fleet are either leased or are pledged as collateral for secured notes, so there might not be a lot left. But I don't really know... there's all these talk upthread about unencumbered aircraft, but you'd have to dig for the latest numbers, which is complicated by the missing 10Q and 6 months since last info... and the possibility that the previous 10Q is fubared by whatever issues they found with current 10Q filing.  ::)
« Last Edit: April 04, 2019, 02:36:28 PM by Jurgis »
"Before you can be rich, you must be poor." - Nef Anyo
--------------------------------------------------------------------
"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"

Nell-e

  • Jr. Member
  • **
  • Posts: 81
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #48 on: April 04, 2019, 02:53:07 PM »
Got it.  A better question would have been 'what's worst case scenario and the probability it will come to fruition? and then what's the probability that the best case scenario will occur?'

The reason I asked the question is I could have sworn I read somewhere that when high yield debt defaults the recovery rate averages out to be ~40%.

Jurgis

  • Hero Member
  • *****
  • Posts: 4357
    • Porfolio
Re: BRS - Bristow Group Senior Unsecured 6.25% 2022
« Reply #49 on: April 04, 2019, 04:03:06 PM »
I don't know. My single experience with default/BK was pretty bad. I think single pennies on the dollar. That's anecdotal. There are way higher recoveries.
"Before you can be rich, you must be poor." - Nef Anyo
--------------------------------------------------------------------
"American History X", "Milk", "The Insider", "Dirty Money", "LBJ"