SOURCE: Alas Aviation Corp.
SNELLVILLE, GA--(Marketwired - Oct 16, 2013) - Alas Aviation Corp., (OTCQB: ALAS) (the "Company" or "Alas"), a niche operator of air cargo and related ground service operators through its operating subsidiary Corporación Ygnus Air, S.A. ("Cygnus"), today announced it has secured a Term Sheet for an $18 million financing arranged by New York City investment banking firm Wellington Shields on Monday, October 14, 2013. The executed term sheet provides for the required refinancing of two Boeing 757-200PCF cargo jets and other Cygnus debts. Completion of the funding is subject to final due diligence review of the company's aircraft assets and financial information.
The $18 million financing with an aviation industry focused financing firm, arranged by Wellington Shields of New York City, satisfies a key refinancing requirement related to Alas' acquisition of Cygnus and will allow Alas to move forward with its business plan. Madrid, Spain subsidiary Corporación Ygnus Air, S.A. ("Cygnus") operates two Boeing 757-200PCF cargo jets in support of Iberia Airlines and TNT Express. Wellington Shields provides investment banking, financing and capital market services to Alas.
Wellington Shields' head of investment banking, Edward Cabrera, said, "We are pleased to arrange the financing for the Cygnus-ALAS transaction which will allow Mr. Leonora and his ALAS team to proceed with the implementation of their business plan with Cygnus and other companies around the world."
CEO Arnold Leonora stated, "This financing will allow us to move forward with the next steps in our business plan which include both the organic growth of Cygnus and acquisition of our next opportunity, the midwest air charter and shuttle services company. Wellington has been instrumental along the way in this transaction and we are happy to conclude this financing process."
About ALAS Aviation Corporation
Alas Aviation Corp. is a niche operator of air cargo and related ground service operators through its sole operating subsidiary Corporación Ygnus Air, S.A. ("Cygnus") and is pursuing other acquisition opportunities in air passenger and cargo transport, MRO (Maintenance & Repair Organization), and ground handling services in Europe and the US. Cygnus operates two Boeing 757-200 cargo jets under Wet Lease (Aircraft Crew Maintenance Insurance or "ACMI") contracts with Iberia Airlines and TNT Express out of Madrid, Spain and Liege, Belgium. Alas seeks to maximize shareholder value through organic growth and strategic acquisitions both regionally and globally.
Safe Harbor Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements as a result of various factors and other risks, including those set forth in the Company's current reports filed with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and the Company undertakes no obligation to update such statements.