In order to refinance debt, American International Group Inc. (AIG)’s jet leasing unit International Lease Finance Corporation (ILFC) has secured a $1.3 billion term loan with a group of 15 banks from Europe, Asia and North America.
Accordingly, ILFC’s term loan will be funded over the next 12 months and is set to mature in 2018. In addition, its proceeds will be used to prepay ILFC’s existing unsecured and secured bank facilities due in October 2011 and 2012.
Besides, ILFC has also secured the right to increase its term loan commitment by $200 million from additional lenders.
Citigroup Inc. (C) and Credit Suisse Group (CS) will act as the joint structuring and placement agents for ILFC’s term loan, while BNP Paribas will act as an additional joint placement agent for the term loan commitment facility.
On January 30, ILFC announced a $2 billion unsecured three-year revolving credit line, and during that period only, ILFC agreed to a public offering of $1 billion in senior notes due 2020. Further, ILFC stated that the revolving credit facility would be used to enhance its liquidity and credit profile, while the note proceeds would be utilized for general corporate purposes, including paying down debt.
Moreover in 2010, AIG’s unit ILFC raised more than $14 billion through various funding sources and other liquidity initiatives. The step was taken to pay down the burden of AIG that received financial support from the federal government at the time of the financial crisis.
In the other news flow, AIG’s unit ILFC announced the promotion of its Chief Financial Officer (CFO) to President. Fred Cromer is now the President of ILFC having replaced Alan Lund, who is retiring from ILFC. Cromer has been with ILFC since 2008, however, he has served as Chief Financial Officer since March 2010. As President and CFO, he will head the corporate finance, planning and operations departments.
Alan Lund, who had served as Vice Chairman and President, retired as President and will remain Vice Chairman of ILFC. Besides, he will serve as a special adviser to the senior executive team through June.
ILFC also announced the promotion of Philip Scruggs, Chief Marketing Officer, to Executive Vice President. Scruggs will continue to manage the company’s global marketing activity, along with pricing, credit and contract administration.
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