Aircraft Sale and Leaseback
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
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