15 Mar 2021
North American Newsletter 15 March
AEI announces two B737-400SF freighter conversions for Aeronaves T.S.M.
Aeronautical Engineers, Inc. (AEI) announced that Saltillo, Mexico-based Aeronaves T.S.M. S.A. de C.V. (TSM) has exercised an option for a B737-400SF and included one additional B737-400SF freighter conversion in this order. In November 2020, AEI announced the first B737-400SF freighter conversion for TSM with one option.
American Airlines Announces Upsize of AAdvantage Financing To $10.0 Billion and Pricing of Senior Secured Notes
American Airlines Group announced the upsize and pricing of the previously announced private offering by the Company’s subsidiary, American Airlines, Inc. and AAdvantage Loyalty IP Ltd., a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of the Company and American. An aggregate of $3.5 billion in principal amount of 5.50% senior secured notes due 2026 and an aggregate of $3.0 billion in principal amount of 5.75% senior secured notes due 2029 are expected to be issued on March 24, 2021, subject to customary closing conditions. The Notes will be issued at a price to investors of 100% of their principal amount. Concurrent with the issuance of the Notes, American and AAdvantage Loyalty IP Ltd. expect to enter into a credit agreement providing for a $3.5 billion term loan facility, also subject to customary closing conditions. In total, the Notes and New AAdvantage Term Loan Facility will provide gross proceeds of $10.0 billion, an increase of $2.5 billion from the anticipated original $7.5 billion transaction size, at a blended average annual coupon rate of 5.575%.
Aviation Capital Group Announces Delivery of One A320neo to Viva Air
Aviation Capital Group announced the delivery of one new Airbus A320neo aircraft on long-term lease to Viva Air. This aircraft, featuring CFM International LEAP-1A engines, is the fifth A320neo to deliver to Viva Air as part of a multi-aircraft transaction between ACG and the airline.
First CFM-powered Airbus A321P2F (Passenger-to-Freighter) aircraft delivered to Titan Airways
Titan Airways has taken delivery of its first Passenger-to-Freighter converted aircraft, a CFM56-5B powered Airbus A321P2F. This delivery is the first of three Airbus A321 converted passenger to freighter aircraft on order. The U.K. airline is among the first carriers in the world to operate the converted aircraft since the plane’s initial production in 2020. The aircraft is leased to Titan Airways by an investment vehicle managed by affiliates of BBAM Limited Partnership (BBAM), which oversaw the aircraft conversion, together with Airbus affiliated partners, that was completed in Singapore.
Investment Firm 777 Partners Orders 24 Boeing 737 MAX Aircraft
Boeing and private investment firm 777 Partners announced today an agreement to add 24 737-8s to the firm’s diverse aviation portfolio, with purchase rights for an additional 60 airplanes. The Miami-based company will place the single-aisle aircraft with its growing portfolio of low-cost carrier investments around the world. Founder and managing partner of 777 Partners Joshua Wander said “We could not be more excited to partner with Boeing on this transformative order for our growing aviation business. The 737-8 aircraft are a fantastic addition to our aviation portfolio and will enable our partners to leverage the jets’ superior economic performance to deliver low fares for their passengers while reducing their carbon footprint. The retrenchment of traditional carriers globally has created an unprecedented market opportunity for more agile and cost-efficient operators. These aircraft will enable our operators to accelerate the recovery in the destinations they serve. We are humbled to call one of America’s greatest manufacturers our partner in this endeavor.”
Titan Aircraft Investments and Icelandair Announce Long-term Agreement for the Sale and Leaseback of Two Boeing 767-300ER Aircraft
Titan Aircraft Investments, the joint venture between Titan Aviation Holdings and Bain Capital Credit, announced the acquisition of two Boeing 767-300ER aircraft from Icelandair. These aircraft will be converted to freighters and placed on long-term leases to Icelandair. Titan Aviation Holdings, a subsidiary of Atlas Air Worldwide Holdings Inc will manage these assets.
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