Spirit Airlines announces proposed senior secured notes offering by newly formed brand and loyalty subsidiaries

©Spirit Airlines

Spirit Airlines has reported that Spirit IP Cayman and Spirit Loyalty Cayman (the Issuers), each a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly-owned subsidiary of Spirit, intend to commence a private offering to eligible purchasers of US$600 million in aggregate principal amount of senior secured notes due 2025 (the Notes), subject to market and other conditions. The Notes will be guaranteed by Spirit and certain subsidiaries of Spirit. The Notes will be secured by, among other things, a first priority lien on the core assets of Spirit’s loyalty programs (comprised of cash proceeds Read more

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Regional Express Group post full-year 2020 net loss of AU$19.4 million

REX Regional Express ©AirTeamImages

The Regional Express (Rex) Group has released its preliminary final report announcing a statutory loss after tax of AU$$19.4 million, on a turnover of AU$$321.8M for the financial year 2020 (FY20). Rex Executive Chairman Lim Kim Hai said, “The COVID-19 pandemic devastated almost every industry with aviation being hit the hardest. Even Rex, which had virtually no debt and strong cash flow in the past, was brought to its knees with passenger numbers plummeting90% between March 15, 2020 and March 28, 2020. Passenger revenue declined by AU$65 million in the last quarter of FY20.” “The Rex Group managed to post Read more

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Swissport agrees to comprehensive restructuring with creditors and shareholders

©Swissport

Swissport has agreed to a comprehensive restructuring with creditors and shareholders including a debt-for-equity swap and a new €500 million long-term debt facility. The restructuring will deliver a significant deleveraging for the company. Swissport has also finalized the €300 million additional interim facility. Following the announcement on August 21, 2020 of an agreement ‘in principle’, Swissport has now entered into binding agreements on a comprehensive restructuring and refinancing (the Lock-Up Agreement) and on a €300 million super senior interim debt facility. “Today’s binding agreements secure Swissport’s long-term future. We are pleased that a consensual deal has been reached with a Read more

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Norwegian reports first-half net loss of NOK 5.3 billion

©Norwegian

Norwegian has reported its results for the first half year of 2020. The figures are, as expected, heavily impacted by the COVID-19 pandemic with a net loss of NOK 5.3 billion. During the first half of 2020, 5.31 million customers travelled with the company; a decrease of 71% compared to the same period last year. Norwegian successfully converted debt, gained access to state guaranteed loans of NOK 3 billion and conducted a public offering, in addition to implementing a series of cost-reduction measures. Still, Norwegian is facing challenging times ahead. Before COVID-19, Norwegian had guided the market of a profitable Read more

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SIA Engineering Company acquires remaining shares in HMSS

©SIAEC acquires remaining 35% shares in HMSS

SIA Engineering Company (SIAEC) has entered into an agreement to acquire the remaining 35% issued and paid-up share capital of HMSS, representing 9,625,000 ordinary shares in the capital of HMSS from Airbus Services Asia Pacific (ASAP), a Singapore incorporated wholly owned subsidiary of Airbus SAS. HMSS was incorporated in Singapore in October 2016 to provide airframe maintenance, cabin upgrade and modification services for the Airbus A380 and A350 aircraft in the Asia-Pacific region and beyond. HMSS has an issued and fully paid-up share capital of US$27,500,000.00 consisting of27,500,000 ordinary shares. Prior to the Transaction, HMSS was owned 65% by SIAEC Read more

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Air New Zealand predicts additional 2021 loss after posting first loss in 18 years

Air New Zealand ©AirTeamImages

After posting its first loss in nearly 20 years, Air New Zealand plans to draw down on a government-backed NZ$900 million loan to help the carrier deal with the fallout from the COVID-19 pandemic. However, the loan will come at a cost, with an interest rate of between seven and nine percent, while the government will retain the right for repayment after six months or conversion of the loan into an equity stake. “It was always intended as a short-term funding arrangement,” Chief Financial Officer Jeff McDowall told Reuters news agency in an interview. “It is not cheap because it Read more

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Rolls-Royce’s first-half results severely impacted by COVID-19

Rolls-Royce has released its first half 2020 (H1) results, with the global COVID-19 pandemic severely impacting its H1 performance and medium-term forecasts. The most pronounced effect was seen in Civil Aerospace with large engine deliveries and flying hours both down around 50% in H1 including a 75% reduction in engine flying hours in the second-quarter (Q2), however business jets and regional flying hours were more resilient. In Power Systems, which was less severely impacted than Civil Aerospace, industrial markets were suppressed, economic disruption and lower utilization impacted demand for services while government marine was stable. Defense remained resilient with no Read more

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Road ahead cleared for Bain Capital recapitalization of Virgin Australia

Virgin Australia ©AirTeamImages

Singapore’s Broad Peak and Hong Kong’s Tor Investment Management, who between them hold approximately AU$300 of Virgin Australia’s AU$2 billion of unsecured bonds, have withdrawn plans for recapitalization of the struggling airline, leaving Bain Capital with an unobstructed path for its own recapitalization plans. The withdrawal comes after a court ruling last week which would make it impossible to complete the necessary due diligence and also a predominantly unconditional DACA proposal that would challenge that of Bain Capital at the September 4 creditors’ meeting, according to the two bondholders. Currently, Virgin Australia is in voluntary administration, the Australian ‘equivalent’ to Read more

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EU Commission gives green light for Brussels Airlines stabilization package

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On July 24, Brussels Airlines reached an agreement with the Belgian Federal Government and Lufthansa to secure the future of Belgium’s home carrier and herewith the long-term development of the airline through a stabilization package. On August 17, the package was approved by the German Economic Stabilization Fund (WSF) and on August 21 the EU Commission also gave its approval. The stabilization package of €460 million – €290 million from the Belgian Federal government and €170 million from Lufthansa – covers, in part, the losses incurred by Brussels Airlines due to the COVID-19 crisis and, at the same time, secures Read more

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Nordic Aviation Capital posts full-year results

Regional aircraft lessor Nordic Aviation Capital (NAC), has posted its financial results for the 12-month period ending June 30, 2020. 2019/2020 was an extremely challenging year for the business and while NAC posted its strongest ever first-half financial performance, it was followed by its most challenging last quarter to date on the back of the COVID-19 pandemic. NAC reported that the business performance result was close to double the result for the same period in 2018/19. The company priced a U.S. private placement of US$859 million in February 202. NAC recorded a 22% increase in placements and extensions compared to Read more

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