Oak Hill Capital Partners will invest an additional $55 million in portfolio company Southern Air Holdings, a global cargo carrier specialising in the provision of block space and aircraft, crew, maintenance and insurance services. Also, Southern Air has also renegotiated its credit agreements, extending its long-term debt maturities to 2015.
Oak Hill declined to comment beyond the press release.
Oak Hill purchased a majority stake in Southern Air in 2007 for an undisclosed amount. The firm merged the airline with its other portfolio company, Cargo 360, to create Southern Air Holdings. In addition to Southern Air, Oak Hill owns two aircraft leasing and acquisition companies, OH Aircraft Acquisition and Avolon, according to its website.
In July, Oak Hill sold Primus International, an aerospace manufacturer of structural components, assemblies and kits for doors, flight controls and control mechanisms, to Precision Castparts for $900 million.
Oak Hill manages more than $8 billion of committed capital. One of the firm's partnerships, Oak Hill Advisors, is in the process of raising its OHA European Strategic Credit fund, which is targeting $750 million for European distressed debt, according to a source with knowledge of the fund.