As part of its £22 million fundraising in November 2007, Silverjet has secured a convertible loan of £10 million from TFB.Silverjet has announced that TFB will not be converting its £10 million convertible loan into new Silverjet ordinary shares at 60 pence per share.
As a result, TFB forgoes its conversion rights whilst Silverjet still benefits from the £10 million loan on highly attractive terms of LIBOR plus 200bps until it is repayable on 17 December 2009.
“Because of recent market conditions, we have decided not to exercise our right to convert our loan to Silverjet into equity. Instead we will continue to work with the company and monitor its performance going forward. We continue to believe the company has a sound business model and excellent prospects for the future to become a major player in the global aviation business.”
Lawrence Hunt, Chief Executive of Silverjet, commented:
“We have a strong relationship with the Reuben brothers with whom we structured a loan of £10 million, at highly attractive rates which are highly beneficial to our business; and we are also working together on a number of joint projects relating to the future development of Silverjet.
“As ever, our primary focus is to continue driving passenger numbers and yields, thereby restoring shareholder value. Based on bookings made to date, we are highly confident that our February load factor will exceed 60% at an increased yield. Forward bookings beyond February continue to be strong.”