Stobart Group Limited Aircraft Sale and Leaseback (7028B)
06 April 2017 - 12:28AM
UK Regulatory
TIDMSTOB
RNS Number : 7028B
Stobart Group Limited
05 April 2017
5 April 2017
Stobart Group Limited ("Stobart" or the "Group")
Aircraft Sale and Leaseback
Stobart Group is pleased to announce that, following the
completion of the acquisition of its aircraft leasing business,
Propius Limited ("Propius"), on 24 February 2017, Propius has
signed an agreement with GOAL German Operating Aircraft Leasing
GmbH & Co. KG ("GOAL") for the sale and leaseback of its eight
ATR72-600 aircraft.
The Group will receive net proceeds of $62.7 million, after the
repayment of existing financing in respect of the aircraft. The
leases are for a 10-year term with an option to terminate after six
years. Aggregate payments under the leases will amount to $15.4
million per annum. The Group will continue to operate all eight
aircraft within the Stobart Air division, primarily providing
flights under the Aer Lingus Franchise Agreement.
The aircraft comprise substantially all of the assets of Propius
which recorded profits before tax of $2.7 million for the year
ended 31 December 2016 and which had gross assets at that date of
$135.9 million (of which the aircraft comprised $126.4
million).
It is intended that the net cash proceeds of the transaction
will be used to fund the continued investment in the Group's
Aviation Division and to further strengthen the Group's financial
position. Completion is scheduled by 14 April 2017.
Warwick Brady, Deputy Group CEO of Stobart commented "We are
pleased to have refinanced these aircraft with GOAL. Aviation is a
core part of the Group's strategy to grow the overall business.
This transaction will provide additional flexibility to invest and
grow both our Dublin-based regional airline, Stobart Air, and
London Southend Airport where we are focused on our target of
delivering 2.5 million passengers annually by 2018."
Enquiries:
Stobart Group Limited +44 20 7851 9090
Andrew Tinkler, Chief Executive Officer
Mark Adams, Chief Financial Officer
Redleaf Communications +44 20 7382 4730
Charlie Geller
Sam Modlin
influence Associates +44 20 7287 9610
Stuart Dyble
James Andrew
Notes to Editors:
Stobart Group
Stobart Group is an entrepreneurial support services and
infrastructure business deriving income from energy, aviation,
civil engineering and investments. The Group has a strong heritage
in logistics, systems and a customer focus that continues to
support all of our divisions. The Group's strategy is to drive
growth and profitability in its core Energy, Aviation and Rail
Divisions whilst realising value for shareholders from its
Infrastructure and Investments Divisions.
Stobart Energy
Stobart Energy is the market leader and number one supplier of
biomass fuel in the UK, sourcing, processing and supplying fuel to
renewable energy plants under a mix of short and long-term
contracts. Its target is to deliver 2 million tonnes of biomass
fuel per annum by 2018.
Stobart Aviation
Stobart's Aviation Division has a strong foundation for
unlocking value across a number of businesses. Our London airport,
London Southend Airport ("LSA"), the capital's newest airport, will
play an important role in providing capacity as London continues to
grow in a capacity constrained market. Its target is to grow
passenger numbers at LSA to over 2.5 million passengers per year by
2018. Our regional airline, Stobart Air, operates a valuable
long-term franchise under the Aer Lingus brand and also operates
under the Flybe brand from LSA and Isle of Man. The Aviation
Division also includes Propius, a Dublin-based aircraft leasing
business, and ground handling and Fixed Based Operation executive
handling at LSA.
Stobart Rail
Stobart Rail is one of the UK's leading providers of innovative
and efficient rail and non-rail civil engineering projects. It also
provides expert and specialist civil engineering across other areas
including supporting investment in the Group's other divisions. Its
focus is to develop long-term frameworks and solid client
relationships in addition to broadening its capabilities and its
recognition within the industry.
Stobart Infrastructure & Investments
Stobart will continue to maximise value from its portfolio of
investments, infrastructure and property assets. The Stobart team
has a long history of creating value from its infrastructure assets
and investments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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