11 August 2008
AVATION PLC
("Avation" or "the Company")
SECURES USD $5.12 M FINANCE FACILITY
Avation PLC is pleased to announce that it has secured a fixed interest USD $5,120,000 finance
facility from an international equipment finance arm of a major British commercial bank. The
Company intends to use the proceeds to expand its aircraft fleet and partially fund the purchase
of an additional commercial passenger jet aircraft.
Finance Facility
The terms of the finance facility are in the main part typical of transactions of this type,
however, salient details potentially of interest to a shareholder in the Company are:
* the finance facility amount is $5,120,000;
* the currency of the facility and interest repayments are denominated in United States
Dollars;
* the facility has a term to expiry of 60 months with total cost funds and margin interest
fixed at 6.57 per cent.;
* The intention is that the facility will be fully amortizing in principle and interest over
its term to expiry; and
* there are no convertible to equity elements to the facility.
Group Intercompany Facilities
Shareholders are further advised that Avation PLC's subsidiary Capital Lease Avation PLC (AIM:
CLA) has repaid $400,000 of the mezzanine funds advanced by the Company in connection with the
recent purchase of two Airbus A321-200 by the subsidiary.
Avation's Chairman, Jeff Chatfield said: "Avation has, once again, proved that despite apparently
turbulent markets, competitive finance remains available to profitable, cash flow generative,
dynamic and entrepreneurial companies allowing them to grow their businesses. We intend to take
advantage of these markets by making aggressive offers for acquiring additional aircraft."
The directors take responsibility for the contents of this announcement.
---ENDS---
ENQUIRES:
AVATION PLC 07783 942 553
Jeff Chatfield, Chairman
STOCKBROKERS
WH Ireland Ltd 020 7220 1670
Cornhill Asset Management Ltd 020 7743 6000
ADVISOR 020 7628 1128
Frank Lucas
Loeb Aron & Company Ltd.
MEDIA 020 7562 3350
Maxine Barnes, Nick Rome
Bishopsgate Communications
Avation plc