Sign In
Last checked at 
14 Dec 2010 11:45
LSE: CLA
14 DECEMBER 2010
CAPITAL LEASE AVIATION PLC
("CLA" or "the Company")
REFINANCING
The Board of CLA is pleased to announce that the Company has been successful in refinancing its mezzanine finance facilities.
In respect to the consideration that was initially used to finance the purchase of one Airbus A320 and two Airbus A321 aircraft in June 2008, $4.8m was high cost junior mezzanine debt. Since acquiring these aircraft, the Company has progressively repaid debt with only $2.0m of the mezzanine portion remaining.
The Company is now in a position to refinance this residual balance of $2.0m at a lower interest rate of 5.23% compared with the mezzanine cost which was previously 14% per annum.
Key terms of new refinance facility:
Amount: USD 2,000,000
Term: Fully amortizing over 36 months
Security: A Mortgage over three aircraft in the Group's Australian subsidiary
Interest cost: 5.23%
Funder: A subsidiary of a major UK bank
This refinance will reduce finance costs to the Company by approximately $176,000 in year one, $230,000 in year two and $266,000 in year three of the refinance term.
--ENDS-
Enquiries:
Capital Lease Aviation Plc 07783 942 553Jeff Chatfield, Executive Chairman
Nominated AdviserJames Joyce, W H Ireland Limited 0207 220 1666
Company Stockbroker
W H Ireland Limited 0207 220 1690
Share Register
Computershare Investor Services Plc 0870 702 0003
Websitewww.capitalleaseaviation.com
Follow the stocks
