Fleet Financing

Silver Airways Announces Completion of Major Strategic Initiatives | Your money

HOLLYWOOD, Fla.–(BUSINESS WIRE)–February 9, 2022–

Silver Airways LLC (“Silver”), the first independent regional airline in the United States and the American launch operator of the fuel-efficient and environmentally friendly ATR-600 series turboprop aircraft, has implemented successfully meeting key strategic objectives, including raising $50 million in new capital through the offering of senior secured convertible notes to further support Silver’s business plan and capital structure and further accelerate its growth. Silver Airways, owned by subsidiaries of investment firm Versa Capital Management, LLC (“Versa Capital”), operates regional passenger networks in Florida, the Bahamas and the Caribbean, and provides regional cargo services with five ATR-500 aircraft operating from Ft. Worth, Texas.

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Silver Airways ATR (Photo: Business Wire)

Silver’s new financing was arranged by Jefferies LLC’s aviation banking team and was fully underwritten by funds and accounts managed by Brigade Capital Management, LP (“Brigade”), a global asset management firm of Leading credit with $30 billion under management after a competitive placement deal.

Silver has also recently implemented the following corporate initiatives to position the airline for continued growth and expansion of its customer offerings:

  • Entered into new or amended aircraft leases with all of Silver’s aircraft lessors, providing significant financial and operational flexibility to the airline.
  • Resumption of new aircraft deliveries with two factory new ATR42-600 aircraft received by Silver in December 2021, increasing its ATR-600 passenger fleet to eleven aircraft, with significant further growth of the ATR-600 fleet planned for 2022.
  • Obtained regulatory approval to begin flying ATR aircraft in freighter operations and entered five ATR72-500 freighters into service at the end of 2021 under a commercial contract and began delivering freight during the recent holiday season.
  • Expanded Silver’s long-standing codeshare relationship with United Airlines to include all Silver markets in the Caribbean and additional routes in the Southeastern United States
  • Completed the integration of San Juan-based Seaborne Airlines into Silver’s operations.
  • Relaunch of Silver’s highly acclaimed website – www.silverairways.com – creating a streamlined travel experience for our valued customers.
  • Introduced expanded passenger service in Florida, Georgia, South Carolina and Louisiana.

Silver President and CEO Steven A. Rossum said, “Without minimizing the tremendous support from so many business partners and stakeholders throughout this unprecedented time, none of this would have could have been accomplished without the dedication, hard work, sacrifice and courage of Silver and Seaborne. Loyal team members who continued to provide safe, reliable and friendly service to our customers every day. Silver and his team members now rightfully have the opportunity for long-term stability and growth with an airline poised for rapid and dramatic expansion.

Rossum added, “After the most extraordinary time in commercial aviation history, we are humbled and energized by the achievement of these transformational initiatives. With new long-term financings, a fleet portfolio of young, fuel-efficient and environmentally friendly aircraft, the final integration of our San Juan-based subsidiary Seaborne Airlines and our new cargo operations in place, Silver is now positioned to exploit its tremendous opportunities in the regional passenger and freight sectors. »

Gregory L. Segall, Chairman of Silver and its owner Versa Capital, said, “Over the past few years, Steve Rossum and his management team have led Silver through extraordinary challenges and implemented bold initiatives that have validated Silver’s value proposition to airline passengers, codeshare. and freight partners. By transforming our fleet into modern, efficient ATR turboprops and securing new long-term financing, Silver now has the resources to aggressively execute its growth strategy. After achieving these successes, we are excited to be part of Silver’s bright future.

In the private placement, Silver was represented by Jefferies LLC as financial advisor and placement agent, and by Smith Gambrell & Russell LLP as legal advisor, while Versa Capital and its affiliates were represented by Dechert LLP as Jural advisor. Brigade was represented by McGuire Woods LLP.

About Silver Airways

Silver Airways, the first independent regional airline in the United States and the American launch operator of the fuel-efficient and environmentally friendly ATR-600 series turboprop aircraft, provides safe, reliable passenger and cargo air services and friendly. Silver operates the most passenger routes within Florida and between Florida and the Bahamas from its gateways in Fort Lauderdale, Orlando and Tampa. Silver’s Caribbean network connects Puerto Rico to the US Virgin Islands, Anguilla, St. Maarten, St. Kitts, Dominica, Santiago, the Dominican Republic and the British Virgin Islands. Silver’s cargo operations are launched from a gateway in Ft. Worth, Texas. Silver is a codeshare partner with United, JetBlue, American, Delta, Avianca and Copa Airlines, and has interline agreements with Air Canada, Alaska Airlines, All Nippon Airways, Azul, Bahamasair, Emirates and APG.

About Versa Capital Management

Versa Capital Management, LLC is a private equity firm focused on controlling investments involving middle market companies and their management teams across a wide range of industries and circumstances. For more information, please visit www.Versa.com.

About Brigade Capital Management, LP

Brigade Capital Management, LP is a global asset management firm founded in 2006 with approximately $30 billion in assets under management. Brigade invests in public and private credit instruments using a bottom-up investment philosophy across a variety of diversified funds. As an SEC-registered investment adviser, Brigade is one of the largest independent alternative asset managers with an investment team of 49 people. Founded by Donald E. Morgan III, CIO and Managing Partner, the company is headquartered in New York and has a global footprint that includes offices in London and Tokyo.

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CONTACT: Katie Loughlin

954-804-4545

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KEYWORD: FLORIDA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: AIRLINE DESTINATIONS TRANSPORTATION TRAVEL

SOURCE: Silver Airways LLC

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PUBLISHED: 02/09/2022 09:00/DISC: 02/09/2022 09:02

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