Business
Re Contract
Re Contract.
About this update from Avation Plc
[{"type":"text","content":"\n \n\n 11 August 2008\n\n AVATION PLC\n\n (\"Avation\" or \"the Company\")\n\n SECURES USD $5.12 M FINANCE FACILITY\n\nAvation PLC is pleased to announce that it has secured a fixed interest USD $5,120,000 finance\nfacility from an international equipment finance arm of a major British commercial bank. The\nCompany intends to use the proceeds to expand its aircraft fleet and partially fund the purchase\nof an additional commercial passenger jet aircraft.\n\nFinance Facility\nThe terms of the finance facility are in the main part typical of transactions of this type,\nhowever, salient details potentially of interest to a shareholder in the Company are:\n\n * the finance facility amount is $5,120,000;\n * the currency of the facility and interest repayments are denominated in United States\n Dollars;\n * the facility has a term to expiry of 60 months with total cost funds and margin interest\n fixed at 6.57 per cent.;\n * The intention is that the facility will be fully amortizing in principle and interest over\n its term to expiry; and\n * there are no convertible to equity elements to the facility.\n\nGroup Intercompany Facilities\nShareholders are further advised that Avation PLC's subsidiary Capital Lease Avation PLC (AIM:\nCLA) has repaid $400,000 of the mezzanine funds advanced by the Company in connection with the\nrecent purchase of two Airbus A321-200 by the subsidiary.\n\nAvation's Chairman, Jeff Chatfield said: \"Avation has, once again, proved that despite apparently\nturbulent markets, competitive finance remains available to profitable, cash flow generative,\ndynamic and entrepreneurial companies allowing them to grow their businesses. We intend to take\nadvantage of these markets by making aggressive offers for acquiring additional aircraft.\"\n\n The directors take responsibility for the contents of this announcement.\n\n ---ENDS---\n\nENQUIRES:\n\nAVATION PLC 07783 942 553\nJeff Chatfield, Chairman\n\nSTOCKBROKERS\nWH Ireland Ltd 020 7220 1670\n\nCornhill Asset Management Ltd 020 7743 6000\n\nADVISOR 020 7628 1128\nFrank Lucas\nLoeb Aron & Company Ltd.\n\nMEDIA 020 7562 3350\nMaxine Barnes, Nick Rome\nBishopsgate Communications\n\nAvation plc\n\n\t\t\t\t\t\t \n ","length":2785,"tagName":"div"}]