Amedeo Air Four Plus Limited has issued 53m new shares at 101p. Since the completion of its initial public offering on 13 May 2015 (the “IPO”), the Company has acquired five Airbus A380 aircraft, 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. 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.
Following admission of the 53m new shares, the Company intends to acquire a sixth Airbus A380 aircraft, 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.
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.
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.
AA4 : Amedeo now has six A380s