ILFC SECURES $1.3 BILLION SECURED TERM LOAN

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By TESTCustomwebLP TESTCustomwebLP April 1, 2011 09:10

ILFC SECURES $1.3 BILLION SECURED TERM LOAN

International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, has closed a $1.3 billion secured term loan with a group of 15 banks from Europe, Asia and North America.  ILFC also has the right to upsize the transaction by $200 million in commitments from additional lenders.  The facility, arranged by Citi and Credit Suisse as joint structuring and placement agents, along with BNP Paribas as an additional joint placement agent, will be funded over the next 12 months and will mature in 2018.

This transaction enables ILFC to improve its overall capital structure through diversification of funding sources.  The bank group, which includes institutions from China, Japan, Singapore, France, Switzerland and Germany, among other countries, has a deep understanding of the global aviation industry.

ILFC Treasurer Pam Hendry says: “The participation of such a broad group of lenders is an endorsement of ILFC’s strategic position and vision.”

The proceeds will be used primarily to prepay existing unsecured and secured bank facilities that would otherwise mature in October 2011 and 2012.  Refinancing these existing facilities with the proceeds of the new term loan is expected to maintain the same approximate mix of secured and unsecured debt for the company.

Additionally, the economic terms of the transaction provide ILFC attractive funding at a current interest rate of approximately 3% along with significant flexibility for ILFC’s ongoing business of leasing aircraft.

ILFC chief financial officer Fred Cromer says: “The attractive pricing that was achieved is due, in part, to ILFC’s leading presence in the leasing space as well as our success over the last twelve months in strengthening our liquidity position.”

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By TESTCustomwebLP TESTCustomwebLP April 1, 2011 09:10
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