1Time marks first aviation deal for Yorkville Advisors
(London/New Jersey, 15 November 2010) Yorkville Advisors, LLC (Yorkville), the US-based alternative investment manager, is pleased to announce that it has entered into a 50m ZAR Standby Equity Distribution Agreement (SEDA) on behalf of one of its funds with Johannesburg Stock Exchange listed 1Time Holdings (1TM SJ), the parent company of a low-fare airline operating in South Africa. The deal was advised out of London.
1Time entered into the SEDA as a means of raising additional capital to develop and expand its business. 1Time operates scheduled domestic services. Its main base is OR Tambo International Airport, Johannesburg and has hubs at King Shaka International Airport, East London Airport and Cape Town International Airport, amongst others.
Pioneered 9 years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. Under the terms of the SEDA, it enables 1Time the discretion to withdraw funds of up to 50 million ZAR in tranches pursuant to the terms of the SEDA, for up to 32 months, in exchange for the issue of new equity. The newly issued shares will be priced at a discount to the prevailing market price at each drawdown.
Commenting on the agreement, Michael Snyman, Group Financial Director of 1time, said: "We are very pleased to have secured this agreement with Yorkville at this stage of the company's lifecycle. This facility provides us with the flexibility to raise capital in tranches as and when required and will assist in our continued growth strategy."
Brian Kinane, Managing Director, Yorkville Advisors UK, said: "We are pleased to be working with 1Time as it offers multi-faceted exposure to African aviation, has a profitable business model, and clear competitive advantages over its competitors. The SEDA commitment of 50M ZAR will enable 1Time to grow into its vision and enhance its ability to prudently manage financial risk."
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Yorkville Advisors UK, LLP
Yorkville Advisors UK, LLP is a sub-advisor to the US based alternative investment manager Yorkville Advisors, LLC.
Founded in January 2001 by Mark Angelo, Yorkville specializes in providing flexible, innovative debt and equity investments and financing in publicly listed companies in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping.
Yorkville tailors its financings according to each company's need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; Denver, Colorado; London and Hong Kong as well as a joint venture agreement in Milan, Italy.