Regional aircraft lessor TrueNoord has successfully upsized and syndicated a five-year $175 million term loan facility with BayernLB.
The term loan will finance a well-diversified portfolio of 21 aircraft including both turboprops and E-jets, and will further increase TrueNoord's fleet.
The syndication extends both parties' long-term working relationship. In addition, introduces Airbus Bank and Hamburg Commercial Bank (HCOB) to the lender group.
“We have been talking to both Airbus Bank and HCOB for some time, so are very pleased to enfold them within our broadening group of financiers,” said TrueNoord's chief operating officer & general counsel Joram Lieteart Peerbolte. “We appreciate the ongoing confidence shown by the financing community in TrueNoord as a secure and credible investment partner, which is demonstrated in this latest transaction.”
HCOB managing director Debbie Frew commented: "This transaction demonstrates HCOB’s appetite for financing regional aircraft, and we are looking forward to growing and diversifying our commitments to this sector.”
Airbus Bank head of aerospace Tom Dreckmann added: “Airbus Bank is pleased to foster its long-term relationship with TrueNoord by entering into this facility. Airbus Bank has been active in supporting lessors in the regional market since its inception in 2014.”
“The TrueNoord team is focused on our growth objectives and constantly evaluating opportunities to acquire portfolios of new and used aircraft for our customers worldwide," said TrueNoord CEO Anne-Bart Tieleman. "This facility further enhances our ability to react in a swift and decisive manner when the right transactions become available."
BayernLB acted as sole structuring agent & mandated lead arranger for the facility.
“The success of this mandate evidences our ability to structure, underwrite and distribute tailored financing solutions for our specialist lessor clients,” said BayernLB director aviation & space Viktor Berta.
The facility was syndicated to a group of international lenders.
The initial term loan was closed during Farnborough last year as a single lender deal financing 11 aircraft. For the initial agreement, Clifford Chance had acted on behalf of TrueNoord and Milbank for BayernLB.