Victory Park Capital Announces Recapitalization of Silver Airways
Feb 06, 2014
CHICAGO – Victory Park Capital (VPC), today announced that portfolio company Silver Airways has secured a credit facility from GB Credit Partners, LLC, the investment management affiliate of Gordon Brothers Group, and Crystal Financial LLC.
The new credit facility will provide a partial liquidity event for VPC, following its launch of the new Company in May 2011, and will also bring several benefits to Silver Airways. Specifically, the financing provides Silver Airways with up to $73 million in capital via a revolving line of credit, a delayed draw term loan reserved exclusively for additional fleet growth, and another term loan that will be used to lower its overall blended cost of capital. Following the transaction, VPC will maintain full ownership of the Company and will continue to control the Company’s Board of Directors.
“Silver Airways has demonstrated strong and steady growth since we launched the Company in 2011.”
“Silver Airways has demonstrated strong and steady growth since we launched the Company in 2011,” said Matthew Ray, VPC Partner and Chairman of Silver’s Board of Directors. “This recapitalization is further validation of Silver’s business plan, its operating platform, and its value proposition. 2013 was a particularly notable year for the airline, with highlights including: the appointment of a new CEO; recognition as Air Transport World’s ‘2013 Regional Airline of the Year’ as well as ‘Top 10 US Airline’ in Condé Nast Traveler’s 26th Annual Readers’ Choice Awards; a renewed partnership with United Airlines and a new interline agreement with JetBlue. I am confident that these accomplishments, coupled with new credit facilities, will ensure that Silver is well capitalized and able to continue its rapid growth and achievement of excellence within the industry.”
About Silver Airways
Silver Airways Corp. (IATA: 3M) is a U.S. owned and operated airline operating almost 200 daily scheduled flights to/from 46 gateways in Florida, the Bahamas, Georgia, Alabama, Mississippi, Virginia, West Virginia, Pennsylvania, New York and Ohio. The airline, which offers more flights within Florida to the Bahamas than any other U.S. airline, has valued partnership and codeshare agreements with United Airlines and interline agreements with American Airlines, Delta Air Lines and JetBlue.
Silver is a 2013 two-time award winner, having been recognized by its industry and the traveling public. In February 2013, it was named the recipient of Air Transport World’s (ATW) 2013 Regional Airline of the Year Award, the first U.S. airline to win regional aviation’s top honor since 2008. This award recognized Silver’s outstanding achievements, as well as the company’s contributions toward elevating the entire regional aviation industry overall. In October 2013, Silver was named one of the Top 10 “Best U.S. Airlines” in the prestigious Condé Nast Traveler’s 26th annual 2013 Readers’ Choice Awards.
The Silver fleet is comprised of Saab 340B Plus aircraft (with a capacity of 34 passengers in a spacious, noise reduction equipped cabin), each powered by highly reliable, fuel-efficient GE jet-turbine propeller engines. The airline also operates Beechcraft 1900D aircraft (maximum seating capacity of 19 passengers) in the airline’s Cleveland network.
The company is privately owned by Victory Park Capital, a Chicago-based investment firm that launched the airline in May 2011.
Visit Silver Airways at www.silverairways.com.