Comair has acquired the first of three brand new Boeing 737-800s in a landmark transaction that saw Investec Aviation Finance as lead arranger and advisor.
In November 2010 Investec financed the pre-delivery payments and structured the term facility in respect of the three aircraft in consultation with the airline operator, taking due consideration of Comair’s unique requirements and the various funding options available in the market. Both Investec and Comair were thrilled with the level of response received from local and international financiers to the RFP for the term debt take out.
The first two aircraft are funded through a ZAR denominated term loan guaranteed by the Export-Import Bank of the United States. Typically these transactions are funded in US Dollars, but in this instance were structured in local currency to meet Comair’s specific requirements.
Commenting on the magnitude and significance of the transaction, Melanie Humphries of Investec Aviation Finance said: “This is a landmark deal for Comair, for Investec and for South Africa. Our relationship with Comair spans 15 years and in a space dominated by international banks, the innovative deal structure, speed of execution and our long-term relationship with the client gave us the edge. We are grateful to Comair for the opportunity to partner with them in securing the best term funding solution for the airline.”
Comair took delivery of the first Boeing 737-800 on 12 July 2012 and will take delivery of the remaining aircraft this year. The first aircraft is being deployed into its kulula fleet and will further enhance its high efficiency, low cost business model.
“Arranging the finance for any aircraft purchase is a challenge, in our case exacerbated by the ongoing global banking crisis. We also concede that Comair can sometimes be a demanding client, and so we are truly grateful for the competence, professionalism and patience displayed by the Investec Aviation team in arranging the finance for this very important Comair deal," said Erik Venter, CEO, Comair.