Aero Capital Solutions (ACS) has closed a $130.3 million secured term loan to finance 15 mid-life narrowbody aircraft, which are currently on lease to airlines globally.
Investec Aviation Finance and BayernLB were mandated lead arrangers and lenders, while Investec acted as structuring agent. Clifford Chance acted as counsel for the lenders, while Vedder Price represented ACS.
Investec’s Lukasz Laski commented that “strong passenger demand, combined with production and certification delays, has created significant backlogs in aircraft delivery,” and generated “healthy demand in the market for mid and end of life aircraft”.
This transaction represents BayernLB’s first structured financing facility for mid-life aircraft. “The age and physical characteristics of the collateral portfolio necessitate an understanding of the relevant leasing and part-out market dynamics and require a structure that accommodates the client’s strategy while providing the lenders with a robust security and collateral package,” said iktor Berta, director of aviation and space at BayernLB.
Ricardo Ramos, Executive Vice President – Investments at ACS, welcomed both banks to its banking group.