AerCap seeks debt for additional American 737s

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AerCap is evaluating financing options for the additional Boeing 737-800s under its sale-leaseback agreement with American Airlines.

The Irish lessor will finance a portion of the aircraft under its existing facilities but is looking at financing options for the remainder of the aircraft, says Peter Wortel, vice president of investor relations at AerCap, at the 2012 Dahlman Rose Global Transportation Conference in New York today.

AerCap is looking at both secured and unsecured financing as well as expanding their existing facilities for the aircraft, he says.

The lessor and Fort Worth-based American agreed to the sale-leaseback of an additional 11 737-800s under the same terms as their existing agreement in August. Wortel says that it is part their original deal with the airline for 35 aircraft that was signed in July 2011.

Deliveries of the aircraft will continue through May 2013, says Wortel. The lease term is 14 years.

The US Bankruptcy Court for the Southern District of New York must approve the deal while American continues to operate under chapter 11 bankruptcy protection.

AerCap willing to consider additional sale-leasebacks with American once the current deal is complete, says Wortel.

American said that it will lease 130 Airbus A319 and A321s, and 91 737-800s that it has on order with deliveries from 2013, in its second quarter results. These include aircraft that are covered by existing sale-leaseback transactions with AerCap and International Lease Finance Corporation.