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Deal Analysis: ILFC's path back to investment grade
10 September 2010
Since the start of 2010, International Lease Finance Corporation (ILFC) has raised about $10 billion in financing with aircraft sales and secured and unsecured loans. It has been a strategic process geared at becoming an investment-grade company again, according to Henri Courpron, CEO, ILFC and Fred Cromer, CFO, ILFC.
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secured debt
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New York Federal Reserve
ILFC: the path back to investment grade
International Lease Finance Corporation (ILFC) is free again, thanks to investors and management. The company raised $4.4 billion in the secured and unsecured bond markets in August (click here), which paid back the New York Federal Reserve and freed up about $10 billion worth of collateral that can be pledged against other financings.
With the capital markets shut in 2009, ILFC was left with no choice but to borrow from parent American International Group (AIG) to pay off loan maturities.
But, as the capital markets return, ILFC has recovered its independence, paying back its parent and indirectly the US government.
Since March, ILFC has raised almost $10 billion with various financings (see table). "The flexibility we have now, on the financing side, has given us a lot of latitude in terms of how we want to manage this company going forward," says...
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