Aviation Capital Group Secures Major Unsecured Financing Deal
Aviation Capital Group Announces Financing Milestone
Aviation Capital Group LLC (ACG) has marked a significant milestone with the closing of a substantial $1 billion unsecured facility. This remarkable effort involves ACG Aircraft Financing Ireland DAC, which serves as the borrower, and is backed by ACG itself. The facility comprises a $500 million term loan and a similar $500 million revolving credit facility. With support from 23 committed lenders, this financing is set to mature in October 2029.
Details of the Unsecured Facility
Under the terms of this facility, borrowings made through the term loan must be drawn within one month following the closing. This swift action is intended to ensure that ACG can quickly mobilize funds for various strategic initiatives.
Dedicated Use of Funds
The entirety of the amounts raised through this facility will be directed to ACG Aircraft Financing Ireland DAC and its wholly-owned subsidiary, ACG Aircraft Leasing Ireland Limited. These funds are earmarked for essential corporate purposes including capital expenditures, paying down outstanding debts, enhancing working capital, and covering associated costs linked to the facility.
Broadened Financial Reach
This new facility adds considerable liquidity to ACG's financial toolkit. When combined with ACG’s existing $2.5 billion revolving credit and a $1.2 billion line of credit from its parent company, Tokyo Century Corporation, ACG now boasts an impressive total of $4.2 billion in unsecured revolving credit. This substantial financial backing is integral to ACG's operational strategy.
Collaboration with Leading Financial Institutions
The arrangement of the facility was expertly handled by a consortium of major financial institutions including DBS Bank Ltd., Bank of China Limited (London Branch), CTBC Bank Co., Ltd., The Korea Development Bank (Singapore Branch), Oversea-Chinese Banking Corporation Limited, and Sumitomo Mitsui Trust Bank Limited (New York Branch). Such collaboration reflects the trust and reputation ACG holds in the financial community.
Leadership Insights
Eric Blau, Senior Vice President, Head of Capital Markets and Treasurer of ACG, expressed significant enthusiasm about this financing initiative. "We are thrilled with the successful closing of ACG Ireland’s inaugural financing and deeply appreciate the tremendous support of our lead arrangers and lending banks," he stated. Blau emphasized that this facility not only fortifies ACG’s banking relationships but also broadens its market presence in the Asia-Pacific (APAC) region.
About Aviation Capital Group
Aviation Capital Group is recognized globally as one of the premier full-service aircraft asset management firms, managing an impressive portfolio of approximately 500 owned, managed, and committed aircraft as of July 2024. With an extensive customer base of nearly 90 airlines across about 45 countries, ACG's specialty lies in commercial aircraft leasing, along with providing essential aircraft asset management services and financing solutions to third parties. Founded in 1989, ACG operates as a fully owned subsidiary of Tokyo Century Corporation.
Frequently Asked Questions
What is the significance of the $1 billion unsecured facility?
The facility provides Aviation Capital Group with vital financial resources to enhance its operations and support various corporate activities.
Who arranged the financing for ACG's facility?
The financing was arranged by a consortium of prominent banks, including DBS Bank Ltd. and Bank of China Limited, demonstrating ACG's strong relationships within the financial sector.
How will ACG utilize the funds from this facility?
The funds will be applied toward capital expenditures, repaying existing debts, enhancing working capital, and covering expenses related to the facility.
What advantage does ACG gain from this financing?
With access to a total of $4.2 billion in unsecured revolving credit, ACG significantly boosts its liquidity and financial flexibility to seize market opportunities.
Where can I find more information about Aviation Capital Group?
For additional details, visit ACG's official website to understand its services and corporate profile.
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