PHC Holdings Announces New Financing Facility to Expand Planet Airways’ Fleet

ORLANDO, Fla., Jan. 31 /PRNewswire-FirstCall/ — PHC Holdings (OTC Pink Sheets: PHCD) announced that Planet Airways, Inc. (“Planet”) has successfully completed a financing facility with Sierra Aircraft Leasing, LLC (“Sierra”) of Hollywood, California. The transaction was completed on January 25, 2005. The proceeds from the facility will be utilized to replace two aircraft, which have been previously retired from Planet’s fleet as well as provide additional working capital to support the continued growth of the company. “Sierra is excited about the relationship that it has with Planet and looks forward to working with the company on various capital-related projects in the future,” stated John Gleason, partner with Sierra.

PHC Holdings recently announced the pending acquisition of Planet, a FAA Part 121 air carrier based in Orlando, Florida. Planet President and CEO Tony DeCamillis said that the relationship with Sierra will complement the anticipated transaction with PHC Holdings. According to DeCamillis, “Sierra will also assist Planet with identifying additional aircraft to support the future growth needs of the company.”

Planet, a qualified carrier for the Department of Defense (“DoD”), recently announced that it was one of the top five U.S. domestic carriers for the DoD in 2004 with DoD reported revenues of $6.8 million. Military charter revenues represented approximately 25% of the Company’s total revenues in 2004, and significantly contributed to the 20% growth in overall business Planet recognized during that same period. Planet expects continued growth in this business sector for 2005.

PHC Holdings is a publicly traded Business Development Corporation trading under the symbol “PHCD”.

Safe Harbor:

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance, development and results of the Company’s business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company’s SEC reports.

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