DNA Doric Nimrod Air One Limited

 

TIDMDNA 
 
RNS Number : 7900X 
Doric Nimrod Air One Limited 
13 December 2010 
 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, 
RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED 
STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE 
UNLAWFUL.  THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF 
SECURITIES FOR SALE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY 
JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS UNLAWFUL. 
                          DORIC NIMROD AIR ONE LIMITED 
                    Announcement of the result of the Placing 
                                13 December 2010 
 
Doric Nimrod Air One Limited (the "Company"), a new Guernsey-domiciled 
closed-ended fund, is pleased to announce that monies totaling GBP39,625,000 
have been raised pursuant to the Company's recent Placing of 39,625,000 million 
new Shares at an issue price of 100 pence each. Nimrod Capital LLP acted as 
Placing Agent to the Company. Admission of the 42,450,000 Shares of the Company 
to trading on the Specialist Fund Market of the London Stock Exchange plc is 
expected to commence at 8.00 a.m. today and on the Channel Islands Stock 
Exchange at 6.00p.m. today. 
 
The ISIN number is GG00B4MF3899 and the SEDOL code for the Shares is B4MF389. 
The shares will trade under the mnemonic DNA. 
 
Investment objective and policy 
The Company's investment objective is to obtain income returns and a capital 
return for its Shareholders by acquiring, leasing and then selling a single 
aircraft. 
The Company will purchase one Airbus A380-861 aircraft, manufacturer's serial 
number 016 which it will lease to Emirates Airlines ("Emirates"), the national 
carrier owned by the Investment Corporation of Dubai based in Dubai, United Arab 
Emirates. 
A senior secured financing facility, provided by Westpac, in the amount of 
US$122 million will provide the monies along with the placing proceeds for the 
acquisition of the Asset. Upon purchase of the plane, the Company will enter 
into a lease with Emirates for an initial term of 12 years, with fixed lease 
rentals for the duration. The debt portion of the funding will fully amortise 
over the 12 year term of the Lease, leaving the aircraft unencumbered at the 
conclusion of the Lease. 
Distribution Policy 
The Company aims to provide Shareholders with an attractive total return 
comprising income, from distributions through the period of the Company's 
ownership of the Asset, and capital, upon the sale of the Asset. 
Income distributions 
The Company will receive income from the Lease Rental made pursuant to the 
Lease. The Directors intend to target a gross distribution to Shareholders of 
2.25 pence per Share per quarter (after costs and payment of any fees) subject 
to compliance with applicable laws and regulations. There can be no guarantee 
that dividends will be paid to Shareholders and, if dividends are paid, as to 
the timing and amount of any such dividend.  It is expected that the first 
dividend be declared at the end of the Company's first quarter. 
Return of capital 
If and when the Company is wound-up (pursuant to a Shareholder resolution, 
including the Liquidation Resolution) the Company intends to return to 
Shareholders the net capital proceeds upon the eventual sale of the Asset 
subject to compliance with the Companies Laws (including any applicable 
requirements of the solvency test contained therein). 
For illustrative purposes only, on the assumption that Shareholders were to 
resolve to proceed with an orderly wind-up of the Company; and at the end of the 
Lease, if the Asset is sold for US$109,899,200 (the average market value of the 
Asset as forecast by three independent aircraft value appraisal firms as at the 
end of the term of the Lease), assuming US dollar / Sterling exchange rates are 
the same, and the Company has not incurred unexpected costs Shareholders would 
get a capital return of 161 pence per Share.  There is no guarantee that the 
Asset will be sold at such sale price or that such capital return would be 
generated. 
Doric will regularly monitor the valuation of the Asset in the market and 
consider the most appropriate time for the sale of the Asset.  If Doric 
considers that a more advantageous price may be obtained for the sale of the 
Asset prior to the term of the Lease expiring, Doric will consult with the 
Directors.  The Directors, in their absolute discretion, may then convene a 
shareholder meeting in order to propose a Liquidation Resolution to Shareholders 
in such circumstances. 
 
Asset Manager 
 
Doric Asset Finance Limited has been appointed by the Company to provide asset 
management and remarketing services. 
 
The Doric team has a long track record of offering investment opportunities with 
positive long-term performance including in respect of a wide range of leasing 
transactions involving different aircraft types and with numerous airlines. 
 
Doric is regulated by the Financial Services Authority and is a member of ISTAT, 
the International Society of Transport Aircraft Trading. 
 
Emirates 
 
Emirates has grown into a successful airline with a modern fleet of aircraft. 
Its high quality standards notwithstanding, Emirates has become one of the 
world's most cost-efficient airlines. 
 
Emirates' fleet, which comprises 155 passenger aircraft (as of 17 November 2010) 
serves 108 destinations in 64 countries.  Emirates was one of the first 
operators of the Airbus A380 and is the largest customer for this aircraft type. 
Emirates currently operates 14 Airbus A380 and has ordered a further 76 A380s 
(as of 17 November 2010). 
A380-800 
The Company's aircraft is an Airbus A380-861 with manufacturer's serial number 
016 equipped with four Engine Alliance GP7200 power plants. 
The Airbus A380-800 is the world's largest commercial passenger aircraft. In a 
typical three-class configuration (First, Business and Economy Class) the Airbus 
A380-800 has capacity for 525 passengers. 
 
Thanks to the combination of the modern Airbus fuselage with the newly developed 
Engine Alliance engines the Airbus A380-800 consumes less fuel per passenger 
compared with modern long range passenger aircraft of the same category 
currently in operation. 
 
The Lease 
The Lease has a term of twelve years and is a net rental lease pursuant to which 
Emirates bears all costs (including maintenance, repair and insurance) relating 
to the aircraft during the lifetime of the Lease. 
 
The Lease Rentals consist of Sterling Lease Rentals of approximately GBP4.3 
million per year and US$ Lease Rentals of approximately US$15 million a year and 
must be paid monthly in advance up to expiry of the Lease.  Pursuant to the 
Lease, Emirates' obligation to pay is absolute and unconditional (unless there 
is a Total Loss of the Asset and the Company has received the applicable 
Termination Amount from Emirates or its insurers, together with any outstanding 
Lease Rentals up to the date on which the Termination Amount is paid). 
 
Nimrod Capital LLP 
 
Nimrod Capital LLP acted as Placing Agent and has been appointed as the 
Corporate and Shareholder Advisor by the Company. 
 
 
 
Defined terms used in this announcement shall have the same meaning as ascribed 
to them in the Company's Prospectus dated 8 December 2010. 
 
For further information, please contact: 
For administrative and company information: 
Anson Fund Managers Limited 
+44 (0) 1481 722260 
 
 
 
For shareholder information: 
Nimrod Capital LLP 
Richard Bolchover 
Marc Gordon 
+44 (0) 20 3355 6855 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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