Financing to Support Manufacturer Sales

AMS provides specialised services to manufacturers of both commercial and corporate aircraft, to extend their sales footprint, by creating financing solutions to borrowers who lack the immediate attraction or target customers for prospective borrowers.

• The creation of Commercial Loan wraps for the benefit of lenders bidding for or arranging Export credit 'ECA' backed financing. Typical export credit advances are between 75-85% of the purchase price of the new equipment, and AMS can enhance the subordinated debt advanced in excess of the 'ECA' facility.
• AMS can also structure and deliver enhanced 'Accreting' commercial subordinated loan facilities which reduce funding cost on topped up ECA finance by loaning part of the underlying debt service on the export credit so as create recourse balloon debt on long-term EXIM/ECGD-COFACE-HERMES equipment finance.

Facilities for the financing of new corporate aircraft to non-OECD resident borrowers and smaller or younger corporate borrower, include asset based finance leases to borrowers in the developed and undeveloped world for the finance of new corporate aircraft.

Typical advances to these non-investment grade buyers include:

• Up to 100% finance for qualifying borrowers but with standard provision of 75%-80% advance rates on new corporate aircraft finance.
• 7-10 year finance lease periods.
• Pre-delivery finance at or before 'Green' delivery.
• High recourse balloon profiles to reduce the amortisation and overall cost of borrowing for the customers.
• High non-recourse balloons delivered into the structures from third party guarantors of end of term unamortised balance on the lease. Through the application of these insurance or guarantor asset support programmes AMS can create Operating Lease optics enjoying similar economics to a pure rental contract, but with the benefit of purchase options for the lessee at term, thus providing the buyer with both the economic and the operational benefit of the new aircraft without the balance sheet constraints associated with pure debt.

For some manufacturers of both corporate and regional aircraft, AMS acts as a sales finance team for manufacturers who require the services of an experienced finance arranger on targeted sales promotion trips.

For more details please contact:

Jeremy Leggett
Aerospace Management Services Ltd