Virgin Atlantic £220 million take-off and landing slot backed secured bond issue

Overview:

• Virgin Atlantic has undertaken a landmark £220 million secured bond private placement backed by the airline's take-off and landing rights at Heathrow airport in London.
• Virgin Atlantic's new £200 million secured bond issue represents a first in the European debt market. The key feature is its use of airport take-off and landing rights as security in the deal, the first time that a structure of this type has been successfully closed in Europe.
• The issue also opens up a new potential asset class for the airline industry.
• The deal structure involved the establishment of an SPV to issue senior secured bonds to selected institutional investors.
• The funds will be used for long term investment and the acquisition of new aircraft.

Sam Duke - Editor