Knafaim buys two aircraft for leasing

Knafaim has bought an Airbus 321-200 and Boeing 737-800, leased to British Airways and South African Airways, respectively.

Global Knafaim Leasing, Ltd., a subsidiary of Knafaim Holdings Ltd. (TASE: KNFM), continues to expand its aircraft leasing operations and announced that it closed a deal to acquire two leased aircraft and their financing. Under the terms of the deal, Global Knafaim acquired two aircraft: An Airbus 321-200 (manufactured in 2006), which is leased to a subsidiary of British Airways (and is sub-leased to British Airways) until 2018, and a Boeing 737-800 (manufactured in 1999), which is leased to South African Airways until 2021.

According to the leasing agreements, the expected income from the leasing fees from the two air carriers is $36.5 million. The total amount of the deal is roughly NIS 200 million ($56.5 million). The company from which the aircraft were acquired is a leading international company that is one of the worlds top-ten aircraft leasing companies.

In order to finance the deal, Global Knafaim Leasing took a bank loan of 65% of the cost of acquiring the airplanes. The loan was issued by an American bank that specializes in aircraft leasing. The remaining balance will be financed using Global Leasings private funds, a total of $16 million, and also from the deposits made by the two carriers.

The deal will increase Global Knafaims fleet to 18 jets, leased to 10 airline companies, in eight countries, on four continents. The income from this deal in leasing fees is expected to total $146 million in the coming years.

Global Knafaim Leasing CEO, Sidney Slasky, said: This deal advances the realization of the companys goal to substantially expand the value of its fleet by rejuvenating its fleet, growing its customer base, and expanding geographically. The significant financing that we received from a leading international bank in the field of aircraft leasing demonstates its confidence in the companys operations, in its experience, and in its international expertise in the field

Published by Globes [online], Israel business news - - on October 16, 2013

Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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