February 24, 2012
ILFC closes $900m senior secured term loan
International Lease Finance Corporation (ILFC) has closed a new senior secured term loan of $900m. The loan will bear interest at LIBOR plus 400 basis points with a 1% LIBOR floor, and is priced at 99% of par value. The collateral used to support the transaction has an initial weighted average age of 13.4 years. ILFC plans to use the proceeds to repay a portion of the company’s outstanding debt, to pay related fees and expenses for the transaction, and for general corporate purposes. A portion of the proceeds will be used to prepay in full all amounts outstanding under ILFC’s secured revolving credit facility, and as a result ILFC no longer has any debt agreements with a change of ownership limitation. The banks supporting this loan include Bank of America, Deutsche Bank, Royal Bank of Canada, and UBS.
In addition ILFC announced that it has increased AeroTurbine’s existing senior secured revolving credit facility by $95m to $430m. The original facility was entered into on December 9, 2011. ILFC President Fred Cromer commented, “This additional financing provides AeroTurbine with increased flexibility to secure additional opportunities in the spare parts market and offer differentiated fleet management products and services to airline customers.”