Daher repays €110 million government-guaranteed loan and secures new financing

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Daher, maker of TBM and Kodiak turboprops, has repaid its remaining €110 million loan backed by the French government and turned its current assets into a new funding round that will propel the OEM’s expansion plans to the states. United States and France.

The company has secured 180 million euros in new funding from US investors, it announced on Wednesday.

Rebound force leads to payback

In June 2020, Daher received an initial loan of 170 million euros guaranteed by the State – in a category called “Loan Guaranteed by the State” or PGE – to cover its cash flow needs. This decision was two-fold, both to provide stability for the business during the COVID-19 pandemic and to position it for growth post-crisis.

An initial amount of 60 million euros had been reimbursed to its original banking pool by Daher in June 2021, a year later, in particular due to healthy logistics and aeronautical positions and the rebound in air traffic observed across the country. world at that time.

The remainder of the PGE Daher had accessed was repaid this spring based on this continued strong performance.

New funding from US investors

In February, Daher decided to acquire the Triumph Group’s aerostructures business unit in Stuart, Florida, to strengthen the company’s manufacturing presence in the United States.

The acquisition builds on Daher’s 2019 purchase of Kodiak’s assets and facilities in Sandpoint, Idaho, and its service and sales center in Pompano Beach, Florida.

With this presence and proposal for continued growth in the United States, Daher was able to attract its next round of financing in part from a consortium of American investors, to the tune of 105 million euros. A further €75m was secured by loans from its original banking pool, for a new total round of funding of €180m. The company was looking for 150 million euros, but attracted more due to its strategic position, according to Daher.

“Beyond recognizing Daher’s good management during the COVID-19 crisis, we were able to convince our historical investors – as well as new American investors – of our realistic prospects, in particular the project to acquire a factory in Florida which produces and assembles large aerostructures and sub-assemblies,” said Didier Kayat, CEO of Daher, in a press release.

“This confidence is based on Daher’s solid foundations, as well as its corporate culture focused on innovation, as well as its family shareholding and governance.

Future investment in the United States

Daher’s financial director, Jean-Philippe Grégoire, also weighed in: “The PGE was a very useful tool in getting through the crisis, but it was defensive in nature. With the Euro Private Placement in 2021 and the US Private Placement in 2022, Daher benefits from much more flexible means adapted to its more offensive strategy.

With deliveries of its TBM and Kodiak turboprop lines hitting new records in 2021 returning to pre-pandemic levels within the year, the OEM is looking to aim higher from a position of strength.

With the launch of the EASA-certified TBM 960 in April, Daher continues its plan to iterate its turboprop models every two to three years to maintain their appeal to its customers, as Kayat noted in a recent podcast.

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