Aviation Capital Group launches new Ex-Im Bank aircraft financing structure

Aviation Capital Group reported that it plans to use a new financing structure in conjunction with the Export-Import Bank of the United States (Ex-Im) for aircraft financing. This new structure taps capital markets that have been largely closed to commercial aviation since the credit market crisis began last September. The transaction provides for the capital markets issuance of more than $850 million in debt backed by Ex-Im to support the financing of 22 Boeing 737s to be delivered to ACG during the next two years. The transaction is a combination of Final Commitment and Preliminary Commitments and that the conversion of the Preliminary Commitment into a Final Commitment requires approval by Ex-Im