Avation: Stand By Finance Facility

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, has entered into a loan facility agreement with an Australian based institution.

Funds are on standby and, when applicable, the loan facility can be drawn to a maximum amount of US$9.5 million. The facility is secured on the Company’s fleet of five Fokker F100 aircraft. These Aircraft are currently un-encumbered and are fully owned by the Company. The loan facility is on usual commercial terms based on the assets against which the loan is secured.

Commenting today, Jeff Chatfield, Chairman of Avation said: “This transaction provides a mechanism for the release of equity from existing aircraft by the Company in funding further growth with a view to lower the overall cost of funds. As such this is an important part of our continued pursuit of an optimal capital structure for the Company.”