SMBC Aviation Capital has secured $1,725 million five-year syndicated facilities with a greenshoe option comprising a $1,294 million term loan and a $431 million revolving credit facility with a consortium of Asia-Pacific, European, and North American banks.
Commenting on the transaction, Aisling Kenny, Chief Financial Officer of SMBC Aviation Capital, said: “The scale of this transaction and level of interest is testament to the strength of SMBC Aviation Capital’s market position, high-quality portfolio, and investment grade ratings. We are pleased to have further broadened our relationships with both new and existing financing partners which include some of the leading banks in the Asia-Pacific region, Europe and North America. Together with our ongoing parental backing and access to the capital markets, this transaction will support our ability to execute on our growth objectives and continue to deliver long-term value to our shareholders.”
The financing generated strong interest across the global banking market resulting in terms reflecting SMBC Aviation Capital’s status as one of the highest-rated, Investment Grade aircraft lessors. Six of the 13 banks which entered the transaction are providing financing to the company for the first time.
Australia and New Zealand Banking Group Limited (ANZ) and Citigroup Global Markets Asia Limited (Citi) acted as joint global co-ordinators while seven banks, including DBS Bank, The Korea Development Bank, Oversea-Chinese Banking Corporation, BNP Paribas, CaixaBank, Cathay United Bank, and Industrial and Commercial Bank of China acted as mandated lead arrangers and bookrunners and four additional banks, including HSBC as a senior mandated lead arranger, and Apple Bank, China Everbright Bank and KeyBank as mandated lead arrangers joined at the senior syndication phase.
General syndication will be launched shortly to raise additional funds under the greenshoe option.