The aviation news release network

Virgin Atlantic completes a £32m addition to its senior secured note transaction


20161201t0744517210500

Virgin Atlantic has announced a £32m increase to its landmark senior secured note transaction. Secured using the airline’s take-off and landing slot portfolio at London Heathrow, the full value of the notes now total £252m.

The initial transaction, announced just over a year ago, remains the only one of its kind in Europe, receiving numerous awards in recognition of the innovative financing structure that allows the use of airport slots in this way.

Proceeds of the financing will support Virgin Atlantic’s long term investment programme, including a fleet modernisation which sees all of its aircraft replaced in a decade – giving Virgin Atlantic one of the world’s youngest fleets. In 2016 the airline confirmed an order for 12 Airbus A350-1000s, of which it is purchasing eight outright.

Virgin Atlantic Group Treasurer, Nathan Dunton said:

“We are very pleased with the continued investor interest in this asset class.  This innovative transaction has allowed us continued access to the value of our Heathrow slot portfolio in a way no other airline has done before.”

The transaction originally attracted participation from four blue chip investors including Pension Insurance Corporation plc, a client of Hastings Fund Management (UK), Standard Life Investments and Edmond de Rothschild Asset Management (UK) Limited. Macquarie Corporate and Asset Finance acted as sole arranger.

The announcement follows two profitable years for Virgin Atlantic, which will release its 2016 annual results in March and is expected to post a third successive profitable year.

Tagged as: , , , , , , , , ,

Categorised in: Air Transport and cargo, Airline

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Member of The Internet Defense League

%d bloggers like this: