Mon, Sep 22, 2008
Maxing Out Three Credit Lines Raises $6.5 Billion In Emergency
Funding
International Lease Finance Corporation is borrowing a total of
$6.5 billion against its three credit lines to help keep the
company solvent into the first quarter of 2009. The funds were
requested on September 16 -- the same day its parent company,
American International Group,
obtained an $85 billion loan from the US
government.
The loan has served to bolster confidence in ILFC, according to
Bloomberg reports, with credit-default swaps on ILFC down 97 basis
points, and contracts on the NAIG Index down 30 points. Major
aircraft manufacturers are also expressing their trust in ILFCs
liquidity, as second-quarter operating income grew to $352 million,
an 85 percent increase attributed to fleet expansion and increased
rental rates.
Airbus SAS CEO John Leahy said that he is confident that ILFC,
which is Airbus' biggest customer, will take delivery of ordered
aircraft. Boeing spokesman John Dern said, "We haven't seen
anything that fundamentally changes expectations for financing and
delivering our backlog... with our leasing customers." ILFC
currently has 102 aircraft on order from Boeing.
Speculation continues as to whether former CEO and founder of
ILFC Steven Udvar-Hazy will try to buy the company back from AIG,
as ANN reported. Prior to the federal
takeover, analyst Alain Karaoglan had recommended that AIG sell
ILFC, predicting the sale might bring $7 billion to $14
billion.
Speaking about the recent loan, credit analyst David Havens
said, "This ups the volume on the need for ILFC to be sold to a
well-financed buyer. ILFC needs liquidity to survive, and this is
its final source of liquidity."
Repayment of the first of the three credit lines is due by
October 2009.
More News
Aero Linx: Model Aeronautical Association of Australia MAAA clubs are about fun flying, camaraderie and community. For over 75 years, the MAAA has been Australia’s largest fl>[...]
Touchdown Zone Lighting Two rows of transverse light bars located symmetrically about the runway centerline normally at 100 foot intervals. The basic system extends 3,000 feet alon>[...]
“Discovery and innovation are central to our mission at Virgin Galactic. We’re excited to build on our successful record of facilitating scientific experiments in subor>[...]
How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]
Student Pilot Reported That During Rotation, “All Of A Sudden The Back Of The Plane Kicked To The Right..." Analysis: The student pilot reported that during rotation, “>[...]
ANN's Daily Aero-Linx (05.02.24)
See All