DP Aircraft I Limited Second Amendment and Restatement to Loan Agreement (2272P)
08 Fevereiro 2023 - 4:00AM
UK Regulatory
TIDMDPA
RNS Number : 2272P
DP Aircraft I Limited
08 February 2023
DP Aircraft I Limited ("the Company")
Company Update: Signing of the Second Amendment and Restatement
to the Loan Agreement
As previously announced, the lessee of the Company's two Boeing
787/8 aircraft, THAI Airways International ("THAI"), was placed
into a Rehabilitation Program to ensure its commercial viability
following the unprecedented market disruption caused by the global
COVID pandemic.
As part of the cost saving measures agreed under the Program,
THAI has been operating its aircraft fleet under a Power by the
Hour ("PbH") agreement with its lessors which enabled the airline
to pay solely for hours actually flown. The lease rental income
generated under the PbH period by the Company's aircraft exceeded
expectations. Ongoing costs and interest on scheduled and deferred
loan amounts were paid when due, with the effect that an increase
in the debt burden was avoided, and a cash reserve was instead
built up. The PbH period negotiated between the Company and THAI
ended, as agreed, on 31 December 2022 and is now being replaced
with new fixed lease rentals of USD 510k per aircraft per month for
the remaining lease period.
Under the debt arrangements in place between the Company and its
lending banks, modified terms and conditions for the total loan
amount outstanding as at 31 December 2022 have to be negotiated for
the period commencing 1 January 2023 until loan maturity in
December 2026. The Company has now negotiated revised terms with
its lenders, including the postponement of certain principal
payments, to align the respective loan agreements with the terms of
the amended lease agreements with THAI.
In a Second Amendment and Restatement to the Loan Agreement
signed on 7 February 2023, the parties agreed on the following main
terms:
-- the total loan amount outstanding of USD 97.9m will be split into two tranches:
o Tranche 1 of USD 62.4m (amortizing to a balloon which is
dependent on the fixed interest rate and still has to be
determined) represents the scheduled debt
o Tranche 2 of USD 35.5m (non-amortizing) represents the
deferred debt
-- USD 2.36m of surplus cash generated under the PbH period will
be used to repay debt on the amortizing Tranche 1, while an agreed
cash reserve of USD 500k per aircraft will be retained to cover
unforeseen costs going forward
-- the interest rate swap currently in place for the scheduled
debt will be dissolved at no net gain or loss
-- Tranche 1 and Tranche 2 will each bear fixed interest rates
to establish reliable and transparent payment schedules and to
eliminate the risk of increasing interest rates. Further details
will be provided once both have been fixed
-- from the monthly lease rental of USD 510k/aircraft, USD 35k
per aircraft will be retained by the Company to contribute to
ongoing fixed costs
Due to the limited liquidity position of the Company, the
lenders have refrained at this stage from charging the
restructuring fees which are typically associated with the process;
instead the lenders will be paid a fee after the eventual
remarketing of the aircraft, subject to surplus sales proceeds
being realized.
For further information, please contact:
Aztec Financial Services (Guernsey) Limited +44(0) 1481 748833
Sarah Felmingham / Chris Copperwaite
Investec Bank plc +44(0) 20 7597 4000
David Yovichic/Denis Flanagan
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END
MSCKZGGZRNLGFZM
(END) Dow Jones Newswires
February 08, 2023 02:00 ET (07:00 GMT)
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