• by  • January 13, 2017 • Amedeo

    AMEDEO AIR FOUR PLUS LIMITED

    Announcement of the results of the New Placing under the Company’s Placing Programme

    13 January 2017

    Further to the announcement on 5 January 2017 of the launch of a second placing under its current placing programme (the “New Placing”), Amedeo Air Four Plus Limited (the “Company”) is pleased to announce the successful completion of the New Placing. Pursuant to the New Placing, which was oversubscribed, 125,000,000 New Shares in the Company are being allotted and issued at an issue price of 104 pence per New Share. The New Shares are expected to be admitted to trading on the Specialist Fund Segment (“SFS”) of the London Stock Exchange’s Main Market at 8.00 a.m. on 16 January 2017 and dealings in the New Shares are expected to commence at 8.00 a.m. on 18 January 2017. The New Shares will be entitled to the dividend declared on 11 January 2017.

    Nimrod Capital LLP acted as Placing Agent to the Company.

    The ISIN number for the existing and the New Shares is GG00BWC53H48 and the SEDOL number for the New Shares is BWC53H4.

    Investment Objective and Policy

    The Company’s investment objective is to obtain income returns and a capital return for its Shareholders by acquiring, leasing and then selling aircraft. To pursue its investment objective, the Company will seek to use the net proceeds of placings and/or other equity capital raisings, together with financing facilities (or instruments), to acquire widebody, or other, aircraft which will be leased to one or more major airlines.

    The Assets

    Since its successful initial public offering in May 2015 at 100 pence per share, the Company has acquired six Airbus A380-800 and two Boeing 777-300ER aircraft (the “Current Assets”), each of which has been leased to Emirates Airlines for a term of 12 years from the date of acquisition.

    Following the completion of the New Placing, the Company intends to acquire two new Airbus A380s to be leased to Etihad Airways PJSC for a term of 12 years from the date of acquisition. The aircraft are expected to be acquired in March 2017 and May 2017. Following the New Placing, there will be 467,250,000 shares in issue and the Company’s market capitalisation will be approximately £486 million, based on the placing price of 104 pence per share.

    Income Distributions

    The Company receives, or will receive, income in the form of lease rentals for each Current Asset and each New Asset. Income distributions are currently being made to Shareholders quarterly and, subject to compliance with applicable laws and regulations, it is anticipated that such income distributions will continue to be made on a quarterly basis. The Company is targeting a distribution to investors of 2.0625 pence per Share per quarter (amounting to a yearly distribution of 8.25 pence per Share) at least until such time as any aircraft other than the Current Assets and the New Assets are acquired. As at the date of this announcement, the Company has been meeting its target distribution and 8.25 pence per Share has been distributed to Shareholders in four quarterly payments. The next quarterly distribution has been announced and is to be paid on or around 27 January 2017 at the Company’s target dividend of 2.0625 pence per Share. The corresponding ex-dividend date will be 19 January 2017.

    Future acquisitions

    The Company’s articles of incorporation provide that the Company may only acquire further aircraft with the approval of Shareholders by ordinary resolution in relation to each proposed acquisition.

    After the acquisition of the New Assets, if the Directors propose that the Company acquires further aircraft and Shareholder consent to such proposed acquisitions is obtained, then subsequent placings may be conducted under the Placing Programme to raise the equity capital portion of the acquisition costs of those further aircraft. In such circumstances, it is the current intention of the Directors to offer Shareholders the opportunity to participate in the equity financing of such further acquisitions on a broadly pre-emptive basis, although other approaches to the equity financing may also be considered and pursued if the Directors consider it appropriate to do so.

    Defined terms used in this announcement shall have the same meaning as ascribed to them in the Company’s Prospectus dated 28 June 2016 as supplemented by the Supplementary Prospectus dated 5 January 2017.