Bird & Bird LLP advised Gas Turbine Efficiency Plc (GTE) in its sale of aviation assets and loan notes fund raising.
GTE is a leading provider of advanced systems to enhance the performance of industrial and aviation turbines. The company announced the proposed sale of its aviation assets to Pratt & Whitney on 29 December for a consideration totalling US$17.1m. The sale, which is conditional on shareholder approval, covers substantially all of its technology and intellectual property for non-core aviation engine wash services business.
In conjunction with this sale, GTE also announced, on 31 December, that it had reached agreement with its largest investors on a restructuring of the A, B and C Loan Notes issued earlier in the year (on which Bird & Bird also advised) and the issue of US$5m in a new series of D Loan Notes.
GTE has made these moves in order to re-define its core product lines and extend its global platform. The raised capital will enable the company to focus on development and commercialisation of performance enhancing solutions for gas turbines in the power generation and oil & gas sectors.
The Bird & Bird team was led by Corporate Partner Richard Eaton and assisted by Corporate Associate Ali Ramadan and Corporate Trainee Solicitor Holly McGuire. In addition, Banking & Finance Partner Brett Israel and Associates David Wallis and Chloe Sanderson in London and Corporate Partners Hans Svensson and Dick Poppelman and Associate Gustaf Anselmsson in Stockholm were heavily involved. Bird & Bird also worked closely with Wilson Sonsini Goodrich & Rossetti Partner Michael Occhiolini and Associate Christina Li on the US aspects of the transaction.
Lead Partner Richard Eaton, commented: "These moves by GTE represent a significant move, and we are delighted to continue to advise our long standing client on theses aspects. This is clearly a game changing move by GTE, and the market has reacted positively, with GTE’s shares more than doubling on the announcement of the sale of the aviation business. We look forward to working with GTE as it moves forward."