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(Alliance News) - Gama Aviation PLC on Friday said it has secured a new GBP25 million credit facility through its wholly-owned subsidiary, Gama Aviation Inc.
Gama Aviation is a Farnborough, England-based aviation services company. Its subsidiary, GAMI, provides aircraft maintenance services across the US, the world's largest private aviation market.
The USD25m facilities cover a term of four years, and comprise a combination of a revolving credit facility, and up to USD6.5 million of term loans.
A total of USD20 million is available immediately, with a further USD5 million available, contingent on future trading performance. The facilities are subject to customary financial covenants.
It said USD10.4 million of the facility has been drawn down to repay GAMI's intercompany loan.
The balance of the facility is available to fund the investment capital expenditure and other working capital requirements of the US business in the execution of the group's organic growth strategy in the US.
In further news, Gama Aviation said that its new GBP20 million term loan is set to mature on January 31, 2023.
The USD10.4 million proceeds from the new credit facility will be applied to its repayment. Gama added that it continues to progress negotiations with other lenders in order to secure the balance of funds needed to repay its term loan by the maturity date.
Gama Aviation shares closed 3.5% higher at 58.50 pence each in London on Friday.
By Holly Beveridge; Alliance News reporter
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