The Board of Avation PLC (LSE: AVAP), announces that on 13 December 2017, the Company entered into a secured aircraft revolving facility agreement (the “Facility”) with a leading international bank.
The Facility will be used to finance aircraft or part portfolios of passenger aircraft on lease to commercial airlines. Aircraft financed by the Facility must satisfy certain agreed criteria which include airline credit, minimum lease duration and aircraft type. The initial Facility amount is US$100 million with interest based on either fixed or floating rates. The optimal duration for loans under the Facility is up to 36 months.
Avation PLC Executive Chairman Jeff Chatfield said: “This Facility provides for rapid purchase funding of new or on lease aircraft and is a useful finance mechanism for trading acquisitions for durations of the short to medium term.”