APRIL 5TH, 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.”