Pellegrino said they were able to acquire the aircraft in London with Captain James Parrish, who is in charge of logistics, representing the company.
Pellegrino said, “Aircraft is ferried to Fairbanks, Alaska where it will be recertified by the Federal Aviation Administration.”
“It should arrive on Saipan from middle to end of January,” he said.
He also confirmed that not only did the company acquire the aircraft, it also acquired the airline business.
“It’s basically moving along just fine,” Pellegrino said.
Asked on the price tag of the aircraft, Pellegrino said it was bought for $400,000.
He, however, declined to share how much Arctic Circle Air acquired the airline business but assured that they have enough money to purchase the aircraft and airline business and jumpstart the operation in February 2012.
In November, Arctic Circle Air and the Commonwealth Development Authority signed an agreement with Independence Bank.
The Rhode Island-based bank approved the interim loan of $600,000 to Arctic Circle Air which was secured by CDA’s cash deposit of $600,000.
In an interview last month, CDA executive director Manuel Sablan said the loan agreement was predicated on a condition the bank would go on to provide a USDA guaranteed loan for the amount that would sufficiently finance the entire project.
Sablan also told Variety that Arctic would be qualified for a $2.7 million loan from Independence Bank to be guaranteed by United States Department of Agriculture.
Yesterday, Pellegrino told Variety that the loan is in the works, confirming a $3 million line of credit that would give the business enough holding power.
With regard to Independence Bank’s feedback on their loan application, Pellegrino said, “They feel very confident we will get it.”
The project that would benefit the farming industry on the islands is looking at getting a loan from the same bank that approved a $10 million loan to the Commonwealth Utilities Corp.
Pellegrino also expressed his optimism and elation in working with the farmers.
He said he will be meeting with the farmers on Tinian over the weekend.
“Everything is going very well,” he said.
In spite of the confidence of the Independence Bank on Arctic’s loan application, Pellegrino is also encouraging interested investors to join them.
“We are still looking for interested investors,” he said.
He said he welcomes investors who are interested to join the people-owned, CNMI-owned venture.
“Come on in, come fly with me, join me,” he said.
With the purchase of the aircraft, the bank would now be in the process of releasing the $600,000 deposited by CDA in an escrow account and that will be CDA’s equity contribution into the Arctic Circle corporation.
In an earlier interview, CDA’s Sablan expressed optimism in the project as well and saying, “Under the Independence Bank arrangement, they would have sufficient cash flow to finance the operation, purchase the aircraft — [enough] to sustain a viable operation.”
Interested investors may contact Anthony “Tony” Pellegrino at [email protected].
