Luxemburg-based Cargolux Airlines has returned to the capital markets to issue a US Export-Import Bank (Ex-Im) -guaranteed bond to finance a new Boeing 747-8F aircraft.
The $155.55 million bond featured a 12-year stretched overall amortisation repayment (SOAR) loan arranged by Crédit Agricole-CIB. BNP Paribas is the arranger and sole bookrunner in the transaction. Crédit Agricole-CIB is also agent of the SOAR loan.
Through the vehicle, VCA Lease LLC, the deal priced at market swaps plus 49 basis points (bps) for a coupon of 1.736%.
The 747-8F (MSN 35821) was delivered on 15 May.
The transaction marks the second time the cargo carrier uses the capital markets for financing an aircraft. In its debut bond in March, it financed another 747-8F (MSN 35808). The deal priced at market swaps plus 47 basis points (bps) for a coupon of 1.859%.
Crédit Agricole-CIB says the transaction marks first time an Ex-Im Bond is combined with a non-US issuer SPV and a SOAR Loan. "The transaction allows Cargolux to benefit a competitive spread in the transaction, as well as cash flows on the amortisation profile term combined with a balloon on the SOAR loan," says Crédit Agricole-CIB.
The Luxemburg-based carrier operates 10 747-400F and seven 747-8F aircraft. It has one additional 747-8F deliveries scheduled for 2013, according to Flightglobal's Ascend Online database as well as another four in 2014.