Avation PLC (LON:AVAP) has entered into a secured aircraft revolving facility agreement with a leading international bank which will be used to finance aircraft or part portfolios of passenger aircraft on lease to commercial airlines.
The firm said the initial facility amount is US$100mln with interest based on either fixed or floating rates. The optimal duration for loans under the facility is up to 36 months.
It added that the aircraft financed by the facility must satisfy certain agreed criteria which include airline credit, minimum lease duration and aircraft type.
Avation PLC ‘s executive chairman Jeff Chatfield commented: "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."