ILFC has raised another $1.3 billion secured term loan with a group of 15 banks from Europe, Asia and North America.
The facility, arranged by Citi and Credit Suisse as joint structuring and placement agents, along with BNP Paribas as an additional joint placement agent, will be funded over the next 12 months and will mature in 2018. The company also has the right to up-size the transaction by $200 million in commitments from additional lenders.
This transaction enables ILFC to improve its overall capital structure through diversification of funding sources. The bank group, which includes institutions from China, Japan, Singapore, France, Switzerland and Germany, among other countries, has a deep understanding of the global aviation industry.
ILFC Treasurer Pam Hendry commented, "The participation of such a broad group of lenders is an endorsement of ILFC's strategic position and vision."
The proceeds will be used primarily to prepay existing unsecured and secured bank facilities that would otherwise mature in October 2011 and 2012.
Refinancing these existing facilities with the proceeds of the new term loan is expected to maintain the same approximate mix of secured and unsecured debt for the company.