24th Feb 2014 11:33
LONDON (Alliance News) - Avation PLC Monday said it had refinanced USD33 million of senior debt secured against two ATR72 aircraft, cutting the cost of the debt by about half.
In a statement, the aircraft leasing company said the deal will provide an immediate boost to earnings. It represents 14.2% of the company's overall debt.
Avation didn't provide the names of the lenders, but said the senior lender is a major European bank while the junior lender is a major Japanese lender. The new facility provides for amortization of the debt over the remaining 8 year lease term attached to the aircraft, the company said..
"In the past month, the company has completed two re-finance transactions of amounts in excess of USD42.5 million. Furthermore in addition the company has recently secured a standby USD20 million warehouse facility for the acquisition of leased aircraft," Chairman Jeff Chatfield said in a statement.
Aviation shares were up 4.2% at 136.5 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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