Silver Airways (3M, Fort Lauderdale International) has successfully raised USD50 million in fresh capital from Brigade Capital Management and at the same time has completed the full integration of its Puerto Rican subsidiary Seaborne Airlines (BB, San Juan Luis Muñoz Marin).
The airline said the fully subscribed issuance of senior secured convertible notes would "provide further support to Silver's business plan and capital structure and further accelerates its growth".
The recapitalisation was the last of many initiatives undertaken by Silver Airways to emerge from the COVID-related crisis alongside the renegotiation of all of its leases to achieve higher "financial and operational flexibility". The ch-aviation fleets ownership module indicates the Floridian carrier leases all of its active aircraft: eight ATR42-600s and three ATR72-600s are owned by Nordic Aviation Capital (seven and two of the respective types) and TrueNoord (one each). The airline also leases four S340B(Plus)es from Jetstream Aviation Capital.
It has also resumed growth, taking a further two ATR42-600s in December 2021. Silver Airways plans to "significantly" expand its ATR -600 fleet in 2022; it has a further seven on firm order from ATR - Avions de Transport Régional. In 2021, the carrier expanded into the cargo segment, adding five ATR72-500(F)s which were placed into revenue service for Amazon.com in the fourth quarter of that year.
In turn, Seaborne Airlines operated four S340Bs, all of which were retired from commercial operations in August 2021. It continues to operate up to 6x daily between St. Croix SPB and St. Thomas SPB in the US Virgin Islands, using a wet-leased DHC-6-300 amphibian operated by Kenn Borek Air (KBA, Calgary). Silver Airways did not respond to ch-aviation's query as to whether it would retain Seaborne Airlines' Air Operator's Certificate or effectively liquidate the unit.
"After the most extraordinary period in commercial aviation history, we are humbled and energised by achieving these transformational initiatives. With new, long-term financing, a fleet portfolio comprised of young, fuel-efficient, and environmentally friendly aircraft, the final integration of our San Juan-based subsidiary Seaborne Airlines, and our new cargo operations all in place, Silver is now positioned to execute on its tremendous opportunities in the regional passenger and cargo sectors," President and Chief Executive Steven A. Rossum said.
