Erickson Air-Crane Inc. has slashed its proposed initial public offering price range to $8.00 to $9.00 per share from previous range of $13.00 to $15.00 per share.
In an amended S-1 filing with the SEC, the company said it now plans to sell 4.8 million shares of its common stock from 5.35 million shares intended previously.
Erickson Air-Crane is an aircraft manufacturing and operating company based in Portland, Oregon, United States. It is known for producing the S-64 Aircrane helicopter, which is used in wildland fire suppression and other heavy-lift operations.
Erickson Air-Crane intends to list its common stock on the NASDAQ Global Market under the symbol "EAC."
The company also cut additional shares offered to underwriters to 720,000 shares from 802,500 shares.
The company estimates that it would receive net proceeds from the sale of shares of common stock in this offering of about $33.5 million, assuming an initial public offering price of $8.50 per share, the midpoint of the sale price range, after deducting underwriting discounts and commissions, expenses.
The company plans to use the proceeds of this offering to pay down indebtedness under its revolving credit facility, which will increase the amounts available for future borrowing under its revolving credit facility and will, in its view, increase the likelihood of its compliance with the financial covenants under its Credit Agreement on an ongoing basis and improve its ability to refinance its senior credit facilities.