(2) diversification into other lines of service such as search and rescue (SAR), fixed wing and unmanned air vehicles (UAV), our stock price has remained highly correlated with the fortunes of our customers in the offshore oil and gas sector.
The chart below provides an illustration of the disconnect between stock price performance within the offshore oilfield services sector and stock price performance within the broader oilfield services industry. The chart also shows how recent recoveries in commodity prices have not yet translated into recovering stock prices in the offshore sector. These disconnects present particular challenges for us in the competition for executive talent, as we continue to compete for executive talent with both onshore and offshore oilfield services companies.
Offshore Oil and Gas Sector Lagging Commodity Price Recovery
Includes the following members of the Simmons Offshore Transportation Services Group as of July 1, 2014: Bourbon S.A., CHC Group Ltd., DOF ASA, Era Group Inc., Farstad Shipping ASA, Gulfmark Offshore, Inc., Hornbeck Offshore Services, Inc., Kirby Corporation, SEACOR Holdings Inc., Solstad Offshore ASA and Tidewater Inc.
We continue to seek ways to operate more efficiently in this difficult market and to work with our clients to improve the efficiency of their operations. In early fiscal year 2018, we made significant changes to reorganize into two distinct hubs, Europe and the Americas. We named area managers for each hub and gave them more commercial and operational control, reducing corporate G&A costs and speeding up decision-making. Consistent with our STRIVE strategy that is described in more detail beginning on page 26 of this proxy statement, we believe the New Bristow is better positioned to win contracts because it is a more nimble, regionally focused and cost efficient business that encourages innovation and creates local expertise with global support.
We were also able to increase our financial flexibility in fiscal year 2018 by repaying in full and terminating each of our senior secured credit agreements and entering into a new secured equipment financing with PK AirFinance S.à r.l., issuing 4.50% Convertible Senior Notes due 2023 and issuing 8.75% Senior Secured Notes due 2023 that resulted in aggregate proceeds of $723.8 million funded during fiscal year 2018.
Alignment of CEO Realizable Pay With Our Performance
The Simmons Offshore Transportation Services Group (the “Simmons Group”) is our peer group for purposes of measuring the Company’s TSR, which is a component used by our Compensation Committee to calculate the payout for one half of our long-
BRISTOW GROUP INC. – 2018 Proxy Statement – 25