Apple Bank closes 787 Ex-Im loan for Intrepid

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US financier Apple Bank for Savings has closed the last of six Boeing 787 deliveries for Polish flag carrier LOT under a US Export-Import Bank-guaranteed loan.

The 787 (MSN 35942), mandated to US lessor Intrepid Aviation in February under a 12-year purchase-and-leaseback transaction with LOT, was part of a six-aircraft financing mandate.

Intrepid became the beneficiary of the Ex-Im Bank-guaranteed loan, which marked its first transaction in the export credit agency-backed financing market.

Unlike most of the previous deliveries to LOT, there is no intention to refinance the transaction in the capital markets, sources say.

Last year, LOT tapped the capital markets on four 787 deliveries. The airline closed two US Ex-Im-backed bonds, totalling $179 million, on 20 June, to fund another two 787 deliveries. The first bond, Ulani MSN 37894, totalled $86 million and refinanced a December 2012 delivery. The pricing on the coupon was 2.18%, equivalent to mid-swap spreads plus 62 basis points.

The second bond, Ulani MSN 35940, totalled $93 million and refinanced a May 2013 delivery. The pricing on the coupon was 2.22%, equivalent to mid-swap spreads plus 62 basis points.

Another June issuance was priced at 2.677%, a coupon equivalent to mid-swap spreads plus 65 basis points.

The last bond, Ulani MSN 35939, refinanced a July delivery. The transaction closed at a 2.553% coupon equivalent to mid-swap spreads plus 65 basis points.