Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, advises that it has priced and issued a US$20,000,000 tranche of its 7.5% senior notes due 2020 which is a tap of and to be consolidated into and form a single series with the existing US$100,000,000 7.5% senior notes due 2020 which were issued in 2015. The tranche proceeds are designated primarily for the purchase of a new ATR72-600 aircraft in June 2017. The Company expects that this aircraft will enter service under an operating lease with a new airline customer in July 2017. The issuance was made under Avation's existing US$500,000,000 Global Medium Term Notes programme.
Details of the pricing of the issue are included below in full in this announcement.
Avation's Executive Chairman Jeff Chatfield said: "The Company is expected to take delivery of an additional new ATR72-600 aircraft in June 2017. The Company has recently observed significant large scale orders for new ATR72-600 aircraft and is pleased that the regional aircraft market segment in Asia continues to develop with new airlines operating additional aircraft in line with growing passenger numbers. Avation remains with a further 27 options for ATR72-600 aircraft. The reopening tap issuance was priced at a premium at 101.25 with DBS Bank Ltd as sole bookrunner for the transaction."