London, July 24, 2024 - Magnetic Leasing, part of the Magnetic Group, has successfully closed a secured term loan with volofin Capital Management to finance mid-life narrowbody aircraft, engines, and landing gears. This transaction and strategic alliance represent Magnetic Group's first structured financing facility as part of its ongoing expansion strategy.
Alex Vella, CEO of Magnetic Leasing and CIO at Magnetic Group, stated, "It's a major milestone in the company's history, and we are all extremely delighted to have secured the financing from volofin that can facilitate our short-medium term growth plans and assist us in taking full advantage of our Group synergies. In volofin, we have a partner that genuinely understands intrinsic asset values and will enable us to maximize our end-of-life asset management capabilities."
The first round of assets in the portfolio includes two A321-200 aircraft on lease to SmartLynx Airlines, together with several narrowbody engines and landing gear on lease to companies, including MTU and Lufthansa Technik.
Adam Kubas, Associate Director at volofin Capital Management, shared: “We are very pleased to have worked with Magnetic Leasing on their first structured financing. Our understanding of various exit strategies, including green time leasing, rebuild, or part-out, enabled us to structure optimal financing that leverages the synergies within the Magnetic Group. We look forward to supporting Magnetic Leasing as they expand their leasing portfolio and trading activities.”
volofin Capital Management is a specialty finance and alternative asset management firm focused on delivering innovative financing and investment solutions to its commercial aviation partners and institutional clients. With headquarters in Vilnius, Magnetic Leasing is an integral part of the Magnetic Group, a lessor and asset management company specializing in mid-end-of-life narrowbody assets.
During the process, Clyde & Co acted as counsel for volofin while Vedder Price & Smith, Gambrell & Russell represented Magnetic Leasing.