• by  • March 10, 2016 • Amedeo

    AMEDEO AIR FOUR PLUS LIMITED

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

    10 March 2016

    Amedeo Air Four Plus Limited (the “Company”), a Guernsey-domiciled company, is pleased to announce the successful completion, pursuant to the Placing Programme, of the Second Placing. Admission of 53,000,000 New Shares of the Company at an issue price of 101p per New Share to trading on the Specialist Fund Market (“SFM”) of the London Stock Exchange plc (“Admission”) is expected at 8.00 a.m. on 11 March 2016.

    Nimrod Capital LLP acted as Placing Agent to the Company.

    The ISIN number for 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 the completion of its initial public offering on 13 May 2015 (the “IPO”), the Company has acquired five Airbus A380 aircraft (the “Assets”), the last of which was delivered in February 2016. 

    The Assets are all leased to Emirates Airlines for a term of 12 years, with fixed lease rentals (the “Leases”). Under the terms of the Leases, Emirates Airlines will bear the cost of repair and maintenance of the Assets and will be required at its own cost to insure each Asset against both damage and third party liability.  At the end of the Leases, Emirates Airlines will be required to redeliver the Assets in full-life physical condition or alternatively by a combination of redelivery in a specified minimum physical condition, as set out in each Lease, plus cash compensation (payable by Emirates Airlines) which together with the aircraft sales proceeds amounts to the appraised (forecast) asset value in full-life condition.

    The Sixth Asset

    Following admission of the 53,000,000 New Shares pursuant to the Second Placing, the Company intends to acquire a sixth Airbus A380 aircraft (the “Sixth Asset”), also to be leased to Emirates Airlines for a term of 12 years; on the same terms as above, with delivery expected in April 2016.

    Income Distributions

    The Company receives, or will receive, income in the form of lease rentals from the assets.  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 targets a distribution to investors of 8.25 pence per Share per annum or 2.0625 pence per Share per quarter (at least until such time as any aircraft other than the Assets and the Sixth Asset are acquired), with the next distribution expected to be in April 2016.

    Future acquisitions

    After the acquisition of the Sixth Asset, 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. 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 3 December 2015.