Hong Kong – 20 December 2018, CALC (the “Group”, SEHK stock code: 01848), a full value chain aircraft solutions provider for global airlines, is pleased to announce the launch of US$500 million 5-year syndicated revolving loan facility (the “Facility”).
The facility is unsecured and will be guaranteed by CALC. The proceeds, subject to upsize in case of oversubscription following syndication, will be used for financing the pre-delivery payments of certain aircraft paid or to be paid to Airbus S.A.S. or The Boeing Company.
Bank of Communications Co., Ltd. Hong Kong Branch, China Everbright Bank Co., Ltd, Hong Kong Branch, Chiyu Banking Corporation Limited, Chong Hing Bank Limited, Industrial and Commercial Bank of China (Asia) Limited and Nanyang Commercial Bank, Limited have been mandated as the Mandated Lead Arrangers and Bookrunners (each an “MLAB”, together the “MLABs”) of the Facility to arrange primary syndication.
The facility agreement is scheduled to be signed by the end of December 2018. The initial utilisation of the Facility will be pre-funded by the MLABs prior to the close of the general syndication.
Mr Barry Mok, Deputy Chief Executive Officer and Chief Financial Officer of CALC, said, "I am pleased that the Facility draws the support from six MLABs, which demonstrates their confidence in CALC's strong business prospects and the positive outlook of the aviation industry at large. Over the years, CALC has established solid infrastructure, as evidenced by its strong order book, extensive global client network and fully integrated asset management capabilities, to further bolster its future growth as it continues to delivers strong and consistent profitability."
CALC is a member of China Everbright Group, 34% owned by China Everbright Limited (“CEL”, 165.HK). It is uniquely positioned as a full value chain aircraft solutions provider for global airlines, offering one-stop services for new, mid-life and end-of-life aircraft. It was enlisted as one of the top 10 global aircraft lessors by internationally renowned aviation consulting firm ICF International, based on the combined asset value of its fleet and order book as of September 2017. As of 30 November 2018, CALC owned and managed a total of 131 aircraft with a strong order book of 183 highly in-demand narrow-body aircraft, including 133 Airbus 320 and 50 Boeing MAX models, to be delivered by 2023.
In May 2016, CALC launched its first syndicated loan for pre-delivery payments mature in 3.75 years with a principal amount of approximately US$195 million, making its debut in the syndicated loan market. In October 2017, CALC closed the second syndicated loan for pre-delivery payment, which is also its first in unsecured nature, with a 4.5 year maturity. Launched at US$175 million, the loan closed at US$425 million after receiving overwhelming market responses.