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Dubai Aerospace Enterprise signs $800m unsecured term financings

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Global aviation services company Dubai Aerospace Enterprise (DAE) Ltd has signed a new senior unsecured term financings for a total of $800 million.

The term financings have a weighted average maturity of 5.5 years in two transactions and were each underwritten by a “leading bank in the region”, according to a statement on Tuesday.

Firoz Tarapore, chief executive officer of DAE, said: “The signing of these financing facilities underscores DAE’s commitment to maintaining exceptional liquidity and a strong balance sheet. We have no near-term debt maturities, providing us with significant flexibility in the current interest rate environment.”

Earlier this year DAE announced that profit before exceptional items had increased 125 percent year-on-year to $203.6 million, with cash flow from operating activities up 20 percent to $956.6 million.

In December, DAE revealed that its board of directors and shareholders had authorised an additional $300 million for bond repurchases to be conducted through open market transactions.

To date, DAE has repurchased approximately $815 million of principal amount of its publicly traded bonds under the previous authorisations of $900 million. DAE now has $385 million of available authority to repurchase bonds.

DAE currently has $3.2 billion of publicly traded bonds outstanding in the capital markets.