Avation Share Discussion Threads

[russman] 08/4/2016 09:38

Any news on the future pipeline?

[broadwood] 08/4/2016 07:14

The Company's Executive Chairman, Jeff Chatfield, said: "The Company has delivered a series of brand new aircraft to airlines during 2016; these aircraft have added scale and also improved the age and lease term metrics. The weighted average age of the fleet has been reduced to 4.5 years with remaining weighted average lease term increasing to 6.7 years."

[russman] 07/4/2016 13:59

Jeff may be able to trade aircraft.Let's find out if he can hack being Chairman.

[russman] 31/3/2016 13:15

Bravo - an amazing achievement.Give Jeff & the gang another bonus.

[davydoo] 31/3/2016 08:38

Well done Jeff and the team at Avation.

From old Fokkers flying to Australian mines to brand new Airbus A321 flying tourists around Europe.

Quite a journey

[russman] 22/3/2016 13:25

Under the option price. Jeff is spitting feathers.Come on plan x, bite the bullet.

[russman] 12/3/2016 13:45

Well we got there in the end.Nothing wrong with managing the balance sheet; but $1m is small change.But there is no liquidity in these bonds; if related parties did not buy them.They would have been junked.Why not buy back more bonds?

[catsick] 12/3/2016 06:33

Buying the bonds back for 10% less than they sold them for makes sense to me, they are sat on too much cash anyway, they will book 100k usd profit on this deal too if they buy back a bit more I think would make sense

[carcosa] 12/3/2016 05:52

A bond price is typically expressed as a percentage of par value, with the percentage converted to a point scale. The price that someone is willing to pay for the bond is always given in relation to 100, or par value.

In this case the price is 91, or 91% of par value and explains why the RNS does not quote a currency amount.

The unit is the smallest part of a bond, usually $1 as in AVAP's case

Unit price = $0.91, thus 1,100,000 units = US$1.001m

If you read the Bonds' prospectus on page 8 the minimum lot size is US$200,000 or equivalent (and higher multiples of $1,000) which is why Roderick Mahoney, Executive Director, acquired 200,000 units as that is the minimum quantity to purchase.

Perhaps the real question regarding these transactions is 'why have they done it'? Why buy debt as opposed to equity? Why now? What's the advantage? Any potential savings between now and 2020 seem very small. is this a start of a bond buying programme?

[russman] 11/3/2016 22:10

AVAP bought 1.1m units. How many dollars did it cost?

[brileyloucan] 11/3/2016 12:36

$91 per $100 face. That is how bonds are quoted.

[russman] 11/3/2016 12:30

It is a very simple query.91.00 what ?

[catsick] 11/3/2016 11:24

At 91.00 these bonds look decent value with a ytm over 10% also nice to see director buying, The only downside is this probably means they cant issue any more debt at reasonable funding levels

[russman] 11/3/2016 09:06

AVAP still cannot get the small details correct.
91.00 it is obvious.
91.00 it can only be ...........
Answers on a postcard.

[russman] 08/3/2016 14:22

Baldrick - Bring me a flagon of my exceedingly strong Ale.

[briangeeee] 08/3/2016 00:22

Very good :-)

[brileyloucan] 07/3/2016 17:59

Avation's fleet is growing fast
Can this undervaluation really last
But an interest rate rise
Or depreciation surprise
Could leave us all reeling aghast

[briangeeee] 07/3/2016 16:10

Don't think you've really got the hang of limericks!

[trytotakeiteasy] 07/3/2016 13:24

Russman - same point of view. Management here are just not high quality.

[russman] 02/3/2016 12:41

I have been thinking.I dont think Jeff is up to the job.The FD is not on the board.He did not close out the CLA minority.Bonds well a big mistake.

[russman] 27/2/2016 09:08

If you sign up for 5 ATRs, you would get a chunky discount to list.
Purchase of 1 A321, not so chunky.
I think $70m is too light.
The bond issues would probably be $100m min.
No one said timing cashflows on a lease book was easy.

[carcosa] 26/2/2016 14:09

All of the Airbus aircraft are on Sale and Leaseback. That's why Avation do not get access to Asset Value Guarantees.

The actual price Avation are paying for the ATR's can be determined from the annual reports by monitoring the fleet changes and comparing it to the PPE notes in the Annual Report.

Corporate Presentation post Interims available here: www.proactiveinvestors.co.uk/upload/SponsorFile/File/2016_02/Avation.pdf

(Edited to include presentation link)

[catsick] 26/2/2016 13:58

Discounts of 50% are not uncommon and as a leasing co they will have access to pretty much the full discount, if you know all the insiders in the industry you will get a price close to a major fleet buyer, a Saudi prince might pay list but his handler will get a big kickback somehow. It is a very small industry and everyone knows each other buying planes, If we can get up to a billion dollar fleet then we will be in a sweet spot and a good target for anyone wanting to break into the industry as well as not having to sit with an amount almost as high as net asset value in the bank earning nothing and cutting the return on equity in half, when this cash is deployed and if subsequent bonds are done in smaller clips we will be looking very healthy

[russman] 26/2/2016 11:31

The discounts are chunky if AVAP buy in bulk.

[catsick] 26/2/2016 09:52

The discounts to list are pretty chunky but either way its at least the equivalent of minimum 4 new atr 72