Published May 09, 2008 11:30 pm - Laurentian President and CEO Robin Wohnsigl and Treasurer and CFO Andrew Edwards said the company hopes to have financing in place by the end of June. They have strong indicators for about half of the $55 million in equity funding they need and have numerous investors who have expressed strong interest in the project.
Laurentian Aerospace leaders cautiously optimistic
By DAN HEATH
Staff Writer
PLATTSBURGH -- Laurentian Aerospace Corp. officials remain upbeat the project will move forward this summer.
Laurentian President and Chief Executive Officer Robin Wohnsigl and Chief Financial Officer Andrew Edwards provided an update on progress toward the $180-million maintenance, repair and overhaul facility to be built at Plattsburgh International Airport.
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"We're cautiously optimistic," Wohnsigl said.
The plan calls for an approximately 273,000-square-foot, two-bay hangar, more than twice the size of the Target store under construction at Champlain Centre. Each bay would be able to service all wide-bodied aircraft with the exception of the Airbus A-380 and the in-development Boeing 747-800.
The company hopes to close on its financing by June 30, but that will require a heroic effort, Edwards said.
"If we don't make it, we won't be far behind," he said.
Once the deal is closed, Wohnsigl will move to Plattsburgh and manage the plant and Edwards will remain chief financial officer.
Wohnsigl said construction is expected to take 18 months.
Between 200 and 300 people are expected to be employed initially, with up to 900 at full production, expected to take 12 to 18 months. Wohnsigl said that if things go well, they could build a second and third facility.
Edwards said there are five key points that have come together to make it work in Plattsburgh. They include a proven management team, advanced technology, a location with enough space to build a hangar around the docking system, strong community support and the availability of long-term, fixed-rate bonds.
"These five components came together like a perfect storm," Wohnsigl said.
Edwards said the funding includes $125 million in tax-exempt bonds to be issued through the County of Clinton Industrial Development Agency. The other $55 million will be equity funding from investors.
"We have strong indicators for slightly more than half of the equity funding," he said.
That leaves between $20 million and $30 million to be obtained, depending on the ratio of funds from lead and secondary investors.
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