9th Feb 2021 15:19
Avation PLC - London-based aircraft leasing company - Agrees with group of bondholders on the terms of a maturity extension of senior notes from May 15, 2021 to October 31, 2026, which is expected to provide enough financial flexibility to support the continued development of the business through and after the pandemic.
The bondholders will receive 6.0 million warrants to subscribe for shares exercisable to October 31, 2026 at a price of 114.5p each. The notes will have a cash coupon of 6.5%, with at Avation's option, an additional 2.5% payment in kind coupon or a 1.75% cash coupon.
"Avation's team has been managing airlines, bankers and financiers on a daily basis in the duration of Covid-19. We have an opinion that air travel passenger movements will exceed previous levels when a treatment or vaccine is deployed, and passengers perceive air travel to be safe. We believe that this more than 5-year bond maturity extension stabilises an important part of the capital structure," notes Executive Chair Jeff Chatfield.
Current stock price: 99.90 pence
Year-to-date change: down 21%
By Dayo Laniyan; [email protected]
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