Atlantic Coast Airlines Successfully Completes Placement of $111.6 Million of Enhanced Equipment Trust Certificates.DULLES, Va.--(BUSINESS WIRE)--Sept. 25, 1997--Atlantic Coast Airlines (NASDAQ/National Market:ACAI), which operates in the Eastern United States as United Express, Thursday announced that it has successfully completed placement of $111.6 million aggregate principal amount of enhanced equipment pass through trust certificates ("EETCs") under Rule 144A of the Securities Act of 1933. The net proceeds of the offering will be used to provide debt financing for leveraged lease Leveraged Lease A lease agreement wherein the lessor, by borrowing funds from a lending institution, finances the purchase of the asset being leased.Notes: The lessor pays the lending institution back by way of the lease payments received from the lessee. Under the loan agreement, the debtor has rights to the asset and the lease payments if the lessor defaults. See also: Debtor, Default, Lease, Leaseback transactions for the first six of the company's order of 12 new Bombardier Canadair Regional Jets ("CRJs"), scheduled for delivery between July 1997 and September 1998. A portion of the proceeds also will be used to finance leveraged leases for four used J-41 turboprop aircraft and the purchase by the company of three used and one new J-41 aircraft. The EETCs have not been registered under the Securities Act and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption. Atlantic Coast Airlines operates its hub at Washington-Dulles International Airport, where it offers more than 200 departures every business day as United Express. From Washington-Dulles, ACA serves 40 destinations in 17 states with nonstop service. Its route system spans the East Coast from Maine to South Carolina and as far west as Michigan. ACA operates a fleet of 60 British Aerospace Jetstream aircraft, including 31 Jetstream 41s which accommodate 29 passengers, and 29 Jetstream 32s which accommodate 19 passengers. In January, ACA announced the acquisition of 12 50-seat jet aircraft from Bombardier's Canadair unit, with an option for 36 additional jets. Three Canadair Regional Jets have been delivered. The average age of ACA's fleet is approximately five years. -0- Note: To retrieve the latest ACA/United Express news releases, please visit ACA's home page on the World Wide Web at http://www.AtlanticCoast.com . CONTACT: Atlantic Coast Airlines Jennifer Heronema, public relations manager, 703/925-6019 |
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