Posted on: 06 February 2014 by Mark Howells
Silver Airways has secured up to $73 million in additional financing from GB Credit Partners, the investment management affiliate of Gordon Brothers Group and Crystal Financial.
Victory Park Capital (VPC), the Chicago-based investment firm which owns Silver Airways, will maintain full ownership and control of the company and its board of directors.
“This recapitalisation and additional financing from GB Credit Partners and Crystal Financial are tremendous validations of our business model, our operating platform, and our strong value proposition to redefine and represent the best of a new, next generation regional airline,” declared Silver Airways president and CEO Dave Pflieger. “Attracting this additional financing is a testament to the vision and leadership of our owners, Victory Park Capital, our board of directors, and the talent and dedication of the men and women of Silver, including our new leadership team.”
“This is very positive news for our company, our business partners – like Saab, GE Engine Services and Sabre – our loyal guests, and our dedicated team members,” Pflieger continued. “A stronger balance sheet means that we will be able to move forward with our exciting plans to finish creating a strong business and operational platform, to acquire more aircraft and grow in strategically competitive markets, to create more jobs, and to better serve our guests. That’s great news for our team members and the many communities that we are privileged to serve.”
Pflieger noted that the new capital will be used to lower current financing costs by providing partial repayments of VPC investments and, most significantly, to fund further growth of the airline. “By reducing the cost of our current debt, creating additional funds for seasonal capital needs, and providing up to $25 million in dedicated, additional capital for growth, we will be well positioned to build on our great progress to date and to begin executing our new five-year business strategy,” the CEO said.
“I’d like to once again thank our owners at Victory Park Capital, our board of directors, and the great team at Silver for their respective leadership, support, and hard work this past year. It was a year of achieving important milestones for Silver,” noted Pflieger. “In addition to being recognised with top honours by our industry and our guests, we grew our existing fleet of Saab 340B Plus aircraft by almost 30%, flawlessly cutover to our own independent Sabre customer reservation system and internet booking engine, strengthened our network, launched new routes, affirmed our partnership and new codeshare relationship with United Airlines and its award-winning MileagePlus loyalty programme, introduced our guests to a first-ever ‘Silver Airways’ sales and marketing campaign, and added to our existing interline agreements with American Airlines and Delta Air Lines by entering into a new interline agreement with JetBlue.”