|
Gama Aviation PLC on Friday said it has secured a new £25 million credit facility through its wholly-owned subsidiary, Gama Aviation Inc.
Gama Aviation is a Farnborough, England-based aviation services company. Its subsidiary, GAMI, provides aircraft maintenance services across the US, the world’s largest private aviation market.
The $25m facilities cover a term of four years, and comprise a combination of a revolving credit facility, and up to $6.5 million of term loans.
A total of $20 million is available immediately, with a further $5 million available, contingent on future trading performance. The facilities are subject to customary financial covenants.
It said $10.4 million of the facility has been drawn down to repay GAMI’s intercompany loan.
The balance of the facility is available to fund the investment capital expenditure and other working capital requirements of the US business in the execution of the group’s organic growth strategy in the US.
In further news, Gama Aviation said that its new £20 million term loan is set to mature on January 31, 2023.
The $10.4 million proceeds from the new credit facility will be applied to its repayment. Gama added that it continues to progress negotiations with other lenders in order to secure the balance of funds needed to repay its term loan by the maturity date.
Gama Aviation shares closed 3.5% higher at 58.50 pence each in London on Friday.
By Holly Beveridge; Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2022 Alliance News Ltd. All Rights Reserved.
|
