Siena Lending Group completed a $50 million asset-based revolving line of credit to MD Helicopters, LLC, a manufacturer of high-performance rotorcraft solutions that support operators flying military, commercial, law enforcement, utility, and VIP mission profiles. The proceeds from the facility will be leveraged to partially repay a debtor-in-possession credit facility and for future working capital needs.
Originally founded in 1932 by Howard Hughes and formerly known as Hughes Helicopter, MD was acquired by McDonnell Douglas in 1984, and subsequently by Boeing in 1997 through the merger of McDonnell Douglas and Boeing. Today, MDH is owned by an investment consortium led by MBIA Insurance Corp., Bardin Hill Investment Partners, and MB Global Partners, and led by aerospace industry veteran, Brad Pedersen, who serves as Chief Executive Officer. The MD family of rotorcraft is world renowned for its value, versatility, and performance. Commercial offerings include the MD 500E, MD 530F, MD 520N, MD 600N, and twin-engine MD 902 Explorer.
Pedersen said, “As we execute on our business objectives, this capital will ensure we can remain laser-focused on improving customer support worldwide, deepening supplier relationships, and implementing an aggressive aircraft sales plan. We are pleased to partner with Siena Lending Group, an innovative financing specialist, that recognized MDH’s strong future potential under new ownership and a reinvigorated management team.”
Scott Elliotto, Senior Managing Director at Siena said, “MDH has a strong brand recognition backed by a storied history. We are excited to partner with the new ownership and executives to support their next phase of growth. Siena worked diligently to understand the true asset values and to meet the expectations of the management team and ownership. We collaborated with Seabury, leveraging off their deep industry knowledge and experience which was instrumental to the success of this financing. This transaction continues to demonstrate Siena’s creativity and scope of our lending capabilities.
Oliver Althoff, Managing Director of Seabury Securities said, “We are grateful to have been able to arrange this important growth capital facility by Siena for our client MDH. Siena proved to be a practical and efficient lending partner by executing on terms that were consistent with their initial financing proposal.”
Seabury Securities LLC (“Seabury”) served as the investment banker and advisor to MDH. Seabury Securities is the industry’s leading practice delivering global investment banking and restructuring capabilities focused on Aviation, Aerospace & Defense.