Bank of China contributes to a $1.2 billion USD syndicated loan to Accipiter to refinance its portfolio of 43 aircraft acquired in 2014

Project narrative

On February 1, 2016, financial close was reached on a deal in which a syndicate of 11 banks — including the Bank of China (BOC) — entered into a $1.200 billion USD syndicated term loan agreement with Accipiter Holdings Limited (later renamed Accipiter Holdings Designated Activity Company) — an Ireland-incorporated and Dublin-headquartered aircraft leasing company and a wholly-owned subsidiary of Hong Kong's Cheung Kong Property Holdings Limited — to refinance its portfolio of 43 aircraft acquired in 2014. This loan carried a maturity period of seven years and a final maturity date of March 17, 2023. This loan was secured by (i.e. collateralized against) the 43-aircraft portfolio. The proceeds were to be used by the borrower for the refinancing of portfolios of aircraft purchased in 2014 from Gecas (21 aircraft for $816 million USD), BOC Aviation Limited (10 aircraft for $492 million USD), and Jackson Square Aviation (14 aircraft for $584.2 million USD) that Accipiter had purchased with its own cash reserves. The 43 aircraft consisted of 41 narrowbody aircraft and two widebody aircraft, namely one Boeing 737-700, 14 Boeing 737-800, five Boeing 737-900ER, one Boeing 777-300ER widebody, one Airbus A319, 20 Airbus A320, one Airbus A321, and one Airbus A330-300 widebody aircraft. In addition to BOC, the following lenders contributed to the loan syndicate: BNP Paribas S.A., Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Crédit Agricole Corporate and Investment Bank (CACIB), Citibank, Commonwealth Bank of Australia (CBA), DBS Bank, Deutsche Bank, Natixis, National Australia Bank (NAB), and Sumitomo Mitsui Trust Bank (SMTB). CACIB and Natixis served as debt coordinators; CACIB also served as facility agent and security trustee and BNP Paribas served as the hedge counterparty.