CALC has launched a US$500 million five-year syndicated revolving loan facility, which is unsecured and will be guaranteed by CALC. The proceeds, subject to upsize in case of oversubscription following syndication, will be used for financing the pre-delivery payments of certain aircraft paid or to be paid to Airbus or Boeing.
Bank of Communications, China Everbright Bank, Chiyu Banking Corporation, Chong Hing Bank, Industrial and Commercial Bank of China (Asia) and Nanyang Commercial Bank are the mandated lead arrangers and bookrunners (MLABs) of the facility and will arrange primary syndication.
The facility agreement is scheduled to be signed by the end of December 2018. The initial utilisation of the facility will be pre-funded by the MLABs prior to the close of the general syndication.
Barry Mok, Deputy Chief Executive Officer and Chief Financial Officer of CALC, said, "I am pleased that the Facility draws the support from six MLABs, which demonstrates their confidence in CALC's strong business prospects and the positive outlook of the aviation industry at large. Over the years, CALC has established solid infrastructure, as evidenced by its strong order book, extensive global client network and fully integrated asset management capabilities, to further bolster its future growth as it continues to delivers strong and consistent profitability."
In May 2016, CALC launched its first syndicated loan for pre-delivery payments mature in 3.75 years with a principal amount of approximately US$195 million, making its debut in the syndicated loan market. In October 2017, CALC closed the second syndicated loan for pre-delivery payment, which is also its first in unsecured nature, with a 4.5 year maturity. Launched at US$175 million, the loan closed at US$425 million after receiving overwhelming market responses.