ILFC pays down secured loan

Victoria
By Victoria April 1, 2013 10:27

ILFC pays down secured loan

International Lease Finance Corporation (ILFC) has partially prepayment and amendment of its secured term loan entered into on February 23, 2012. This prepayment reduces the outstanding principal amount to $750 million, from the original loan amount of $900 million.

The amendment reduces the interest rate to LIBOR plus 2.75% with a LIBOR floor of 75%, down from LIBOR plus 4.0% with a LIBOR floor of 1.0%. The maturity date remains June 30, 2017.

“This amendment furthers our goal to reduce our funding costs across our debt portfolio. An interest rate reduction of 150 basis points provides meaningful savings,” said ILFC Chief Executive Officer Henri Courpron. “Looking ahead, our key priority remains strengthening our liquidity and capital position by diversifying funding sources and reducing funding costs.

“This loan is entered into by an indirect, wholly-owned subsidiary of ILFC, as the borrower, guaranteed on an unsecured basis by ILFC, and on a secured basis by certain wholly owned special purpose subsidiaries of the subsidiary borrower. Certain collateral that served as security for the secured term loan has been released in connection with the prepayment. The special purpose subsidiaries now collectively own 54 aircraft and related equipment and leases, with an average appraised base value as of December 31, 2012 resulting in an initial loan-to-value ratio of approximately 55%. The maximum loan-to-value ratio remains 63%.

Victoria
By Victoria April 1, 2013 10:27
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