Vertical flight solutions provider Bristow Group entered into a new 12-year secured equipment financing for an aggregate amount up to £55 million ($70 million) with a syndicate of banks led by National Westminster Bank.

Bristow Group will used proceeds from the financing to support capital commitments related to the company’s second-generation UK search and rescue (UKSAR2G) contract with the Department for Transport and the Maritime & Coastguard Agency of the UK.

“This new credit facility further strengthens our financial position and will support a successful transition of operations to the new UKSAR2G contract,” Chris Bradshaw, president and CEO of Bristow Group, said. “We would like to thank our banking partners for their support of Bristow and for helping facilitate our continued growth and success.”

Bristow’s obligations will be secured by four new-delivery AgustaWestland AW139 search and rescue (SAR) helicopters. The credit facility has a 15-month availability period and is expected to fund during 2024, subject to the delivery of the new SAR helicopters. The credit facilities will bear interest at a rate equal to the Sterling Overnight Index Average plus 2.75% per annum.

The banking syndicate includes for this financing includes National Westminster Bank, Clydesdale Bank (trading as Virgin Money) and First-Citizens Bank & Trust Company.