ALC extends $1bn bank warehouse at cheaper rates

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Air Lease Corporation extended a $1 billion bank warehouse facility and reduced the financing's interest rate in an effort to curtail the lessor's usage of secured debt.

The lessor extended the warehouse facility's to June 2015 with a subsequent four-year, term-out option.

At the same time, ALC reduced the interest rate on the facility to Libor plus 2.25% on drawn balances from Libor plus 2.50%. It also lowered the interest rate on undrawn balances to 0.50% from 0.75%.

"We are very pleased to close the amendment and extension to our bank warehouse facility. This facility furthers ALC's strategic goals of...reducing interest expense, and extending the weighted average life of our debt," says Gregory Willis, senior vice president and chief financial officer of Air Lease Corporation.