Aircraft lessor TrueNoord has closed a new five-year term loan of $275 million to expand its aircraft assets.
The cash will also help "finance a well-diversified portfolio of 31 owned regional jet and turboprop aircraft currently on lease to 13 different airline customers based in 11 countries", TrueNoord said, adding that the loan"will facilitate further business development" and help with a"targeted growth strategy which is endorsed by cornerstone investors: Freshstream, BlackRock, abrdn and others".
“With the successful closing of this secured long-term financing TrueNoord has been able to further increase its group of relationship banks supporting the continued growth of the business. We have broadened our financing resources and the facility gives us the ability to aim for further market opportunities, like portfolio transactions for new and used aircraft,” said Anne-Bart Tieleman, the chief executive.
The loan was arranged by Morgan Stanley as sole structuring agent and lead placement agent; Citigroup Global Markets, RBC Capital Markets, and SG Americas Securities as joint placement agents; and MUFG Bank, and BayernLB as mandated lead arrangers. The lender group is made up of MUFG, BayernLB, Cathay United Bank, Absa Corporate & Investment Banking, Morgan Stanley, and Umpqua Bank. Legal advisers Clifford Chance acted on behalf of TrueNoord; Milbank represented the banks.
“We work closely with our customers, offering a range of lease options to support their business growth ambitions. Strengthening our position with additional funds sends a positive signal to all our partners," Tieleman said, adding that he was "proud that the finance community sees TrueNoord as a secure and credible investment partner".
"We have a solid track record, a quality portfolio of aircraft and lessees, and a balanced growth plan. It is extremely rewarding for our team to develop our relationships with the banks involved in this Term Loan and we thank all parties for their hard work and professionalism in successfully concluding this transaction," Tieleman continued.