Aviation Capital (ACG) closed a refinancing for one Boeing 777-300ER using financing from the Korean market on 6 December, after Airfinance Journal reported on 5 December that the deal was expected to close.
Crédit Agricole CIB provided around $90 million of senior debt financing for the widebody, which is operated by Taiwanese flag carrier China Airlines. The French bank acted as sole mandated lead arranger, senior lender, facility agent and security trustee.
The 2015-vintage aircraft was acquired by South Korean funds underwritten by security house Korea Investment & Securities.
KIS and DB Financial Investment acted together as co-arranger.
DB Financial Investment and JC Partners sourced the deal.
The mezzanine debt is worth around $50 million, the junior debt is worth around $12 million and the equity portion around $6 million, according to a source. Around 50% of the equity has, as of 15 December, already been sold down to hedge fund investors.
Taeho Lee, assistant manager at DB Financial Investment, tells Airfinance Journal: "It was a meanginful deal for Korea as three Korean parties cooperated to pull a trigger to expand Korean investors' views in aircraft financing, because this is the first time that we sold down a whole Taiwanese aircraft in Korea and Hong Kong. We hope to bring more competitive opportunities to Korea."
Winston & Strawn is acting for ACG. Lee & Li is acting for ACG as Taiwan counsel. Clifford Chance is acting for CA-CIB. Yulchon is acting for the Korean institutional investors.