Transportation Partners issues $143.7 million bond to finance ATR aircraft

Overview:

• Transportation Partners has issued the first Coface guaranteed $143.7 million bond to finance ATR aircraft.
• The guaranteed floating rate notes are due in 2025 for Aeronautic Investments 18, an issuing vehicle set up within an aircraft financing structure for the Indonesian family-owned aircraft leasing firm.
• This is the first time Compagnie Française d’Assurance pour le Commerce Extérieur, acting for the account of the French State (Coface), has guaranteed a bond from an Asian issuer.
• BNP Paribas acted as the sole lead manager for the transaction.
• In 2014, Transportation Partners took delivery of 10 ATR 72-600 turboprop aircraft and leased them to Wings Abadi and Malindo Airways. The financing was structured through ten Coface guaranteed loans arranged by BNP Paribas. The proceeds from the transaction are used to refinance those loans at a lower funding cost to Transportation Partners.

Wai Yee Tsang - Journalist