AVATION PLC obtains senior secured revolving warehouse facility

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces that it has been successful in obtaining a further finance facility to support future aircraft acquisitions. The facility has been designed to support the ad-hoc purchase of an aircraft when suitable opportunities present themselves.

Salient key features of the warehouse facility are:
- The facility has been provided by a major European Bank and is a facility to provide a full recourse, senior secured, revolving warehouse facility to provide partial short term funding for the purchase of particular aircraft (the “Facility”);
- The Facility is a revolving facility which allows drawings and then re-drawings over a three year period;
- The Facility will typically be used for one aircraft at a time;
- Drawings used to acquire aircraft have a two year repayment term;
- The Facility interest margin is priced at usual commercial terms;
- The Facility can be drawn to $20m in any instance;
- Drawings may be applied up to 75% of the agreed value of the aircraft purchased.

This percentage is adjusted depending upon age of aircraft and ranking of airline
leasing the aircraft purchased;
- The Facility is secured by the aircraft purchased;
- The typical aircraft for use of proceeds include:
o ERJ190-95;
o ATR500 and 600;
o Boeing 737-700 and 737-800 NG and max;
o Airbus A319, A320 and A321 CEO and NEO; Airbus A330; and
o Boeing 777.

Jeff Chatfield, Executive Chairman, said: “We are continually seeking to acquire aircraft and assessing aircraft leased to commercial airlines. The warehouse facility is a pre-approved finance line thus enabling the purchase of a target aircraft within a short timeframe. Once acquired the aircraft can then be re-financed in the more traditional manner. This process will assist Avation to quickly secure the aircraft on a case by case basis in order to produce optimal long term returns to its shareholders.”