Avation enters $100m aircraft revolving credit facility agreement

Avation has entered into a secured aircraft revolving facility agreement with an unnamed “leading” international bank, it announced on Thursday.

The company said the facility would be used to finance aircraft or part portfolios of passenger aircraft on lease to commercial airlines.

Aircraft financed by the facility must satisfy certain agreed criteria which would include airline credit, minimum lease duration and aircraft type, the Avation board said.

The initial facility amount would be $100m, with interest based on either fixed or floating rates.

Avation added that the optimal duration for loans under the facility was up to 36 months.

“This facility provides for rapid purchase funding of new or on lease aircraft and is a useful finance mechanism for trading acquisitions for durations of the short to medium term,” said Avation executive chairman Jeff Chatfield.