AMEDEO AIR FOUR PLUS LIMITED
Announcement of the results of the Initial Placing under the Company’s Placing Programme
6 July 2016
Further to its announcement on 29 June 2016 of the opening of a new placing programme (the “Placing Programme”), Amedeo Air Four Plus Limited (the “Company”) is pleased to announce the successful completion of the initial placing under the Placing Programme (the “Initial Placing”). Pursuant to the Initial Placing, which was significantly oversubscribed, 40,250,000 New Shares in the Company are being allotted and issued at an issue price of 102 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 7 July 2016 and dealings in the New Shares are expected to commence at 8.00 a.m. on 11 July 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 Current Assets
The Company has acquired six Airbus A380-800 aircraft (the “Current Assets”), each of which has been leased to Emirates Airlines for a term of 12 years with fixed lease rentals. The initial four aircraft were acquired following the completion of the Company’s initial public offering on 13 May 2015 and two further aircraft were acquired by the Company following the successful completion of a placing programme on 10 March 2016.
The New Assets
Following the completion of the Initial Placing, the Company intends to acquire two Boeing 777-300ER aircraft (such aircraft being the “New Assets”).
The New Assets will also be leased to Emirates Airlines, for a term of 12 years, with fixed lease rentals.
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 is expected to be made in July 2016.
After the acquisition of the New Assets, 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.
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.