Silver Airways raises $50 million of new capital

US airline Silver Airways announced it raised $50 million of new capital and has completed some strategic objectives that will position it for a strong future. As it now looks ahead, the airline is positioned well to expand its regional network and take advantage of new opportunities that may arise.

Florida based Silver Airways successfully raised $50 million of new capital. This came through the placement of senior secured convertible notes, which will support the carrier’s business plan and capital structure. It also plans to use some of the proceeds to fund future growth.

Senior secured convertible notes are one tool that airlines can use to raise funds. They are issued notes with the option for the note to be converted into a preset amount of the issuer’s shares.

It is categorized as debt for the airline, but access to this kind of investor funding is relatively easy and positions it for growth. The financing was arranged by Jefferies LLC aviation banking team and, according to the airline, was fully subscribed to by funds and accounts managed by Brigade Capital Management.

The funding is part of a broader corporate initiative puzzle. The airline also benefited from some fleet-related moves. This includes new or amended aircraft leases with all of Silver’s aircraft lessors, which gives the airline added financial and operational flexibility. At the same time, it received two new ATR 42-600s in December 2021, bringing its -600 fleet to eleven aircraft, with plans to grow this fleet even further in 2022. It also expanded passenger service in Florida, Georgia, South Carolina, and Louisiana.