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8 Oct 2008 07:00
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Capital Lease AviationΒ Plc
("CLA"Β orΒ "the Company")
SecuresΒ aΒ senior secured, revolving warehouse facility for USΒ $100m
The Board of CLA, the AIM quotedΒ aircraft leasing company,Β announcesΒ that it has been successfulΒ inΒ obtainingΒ a further finance facilityΒ for USΒ $100Β million,Β withΒ provision forΒ a furtherΒ USΒ $50mΒ subject to a syndicatedΒ book build.Β The salient terms of the finance facilityΒ are as follows:
The facility is from a majorΒ EuropeanΒ Bank and isΒ aΒ facilityΒ to provide a full recourse, senior secured, revolving warehouse facility (the "Facility") to partially fund the purchase price ofΒ assortedΒ aircraft. TheΒ Facility is underwrittenΒ by the bankΒ in the amount of USΒ $100m,Β with provisionΒ for anΒ additional USΒ $50mΒ which is subject to aΒ syndicatedΒ book build;
TheΒ Facility isΒ a revolving facility which allows drawings and re-drawings over aΒ 2Β year periodΒ with a 3 year term out;
TheΒ Facility has aΒ 60-monthΒ expiryΒ termΒ withΒ aΒ seniorΒ marginΒ of 2.25% above theΒ banksΒ cost of funds, which is at or about LIBOR.Β Drawings may be made up to 80% of the value of individual aircraft, with the balance being funded by the Company;
The use of proceeds is to purchase new generation Airbus A330-200 / 300, Airbus A320 family and Boeing 737 NG leased aircraft;Β
The security is in the form of aΒ registered mortgage over each aircraft purchased using the facility.
Jeff Chatfield Chairman said "We believeΒ thatΒ aircraft valuations areΒ in the process ofΒ dropping to a point to beΒ highly advantageousΒ to buyers. We anticipateΒ returns to serious long term investorsΒ based on purchases made in the near term to beΒ highly attractive. The current marketΒ conditionsΒ may represent the bestΒ opportunityΒ since 2001 to purchaseΒ highΒ quality, newer aircraft that are operatedΒ under leaseΒ by top tier airlines."Β
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Enquiries:
CAPITAL LEASE AVIATION PLC
Jeff Chatfield, Chairman 07783 942 553
STOCKBROKERS
WHΒ IrelandΒ Limited 020 7220 1690
MEDIA
Maxine Barnes, Nick Rome
Bishopsgate Communications 020 7562 3350
NOMINATED ADVISER
James Joyce, David Porter
WH Ireland Limited 020 7220 1666
WebsiteΒ http://www.capitalleaseaviation.com/
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