Virgin Atlantic Airways closes $350 million debut revolving credit facility

Eleanor Steed
By Eleanor Steed January 23, 2018 15:14

Virgin Atlantic Airways closes $350 million debut revolving credit facility

Virgin Atlantic Airways has closed a three-year $150m secured syndicated revolving credit facility with options to increase to $350 million and extend the term to five years.

The facility, which is secured against aircraft and engines, will be used to help the airline invest in its customer experience and plan for future growth, including the pre-delivery payments on Virgin Atlantic’s order of new A350-1000 aircraft due from 2019.

The facility was arranged by Lloyds Bank and includes a syndicate of six leading banks.

The facility follows a senior secured note financing transaction undertaken by Virgin Atlantic on its Heathrow slot portfolio in December 2015, which was the first transaction of this type in Europe.

Dentons advised on the deal. Lee Federman, UK Banking and Finance partner led on the transaction together with aircraft finance specialist, Stephen Temple.

Federman said, “We’re delighted to have assisted such a key client on this complex financing which showcases our strength in both syndicated corporate lending and aircraft finance. This transaction will help Virgin to further invest in their customers and use of technology, as well as a younger and more cost-efficient fleet.”

Eleanor Steed
By Eleanor Steed January 23, 2018 15:14