TrueNoord secures US$250 million committed financing to boost portfolio expansion
TrueNoord, the specialist regional aircraft lessor, has secured additional support from Citibank, Société Générale Corporate & Investment Banking, Royal Bank of Canada and Farallon Capital Management, which brings total committed and available funds to US$250 million.
This will be used by TrueNoord to finance business development and expand its portfolio of 50- to 150-seat class aircraft which includes regional jets and turboprops from Embraer, Airbus, ATR and De Havilland Canada.
Julien Millet, Chief Financial Officer, TrueNoord, said: “Regional aviation has performed strongly throughout the pandemic, sustaining important connectivity with remote communities and enabling airlines to rightsize their fleets as payload fluctuated. Continued investor confidence in the regional aircraft leasing sector reaffirms TrueNoord’s specialist focus and underpins our balanced growth trajectory for 2022 and beyond.”
The growth facility provided by Farallon Capital Management provides significant dry powder for future transactions while improving TrueNoord’s capital structure. Legal advisers Willkie Farr & Gallagher (UK) LLP acted for TrueNoord and Latham & Watkins represented Farallon.
Senior warehouse financing continues to be underwritten by Citibank, Société Générale Corporate & Investment Banking and Royal Bank of Canada. The availability period of this facility, originally raised in September 2019 with a total commitment of US$360m, has been extended to further strengthen the growth of TrueNoord’s portfolio. Citibank is acting as agent and security trustee.
With the augmentation of TrueNoord’s financial firepower, CEO Anne-Bart Tieleman anticipates that more opportunities will be fast-tracked as the lessor transitions through the first six months of the year.
She said: “We have recently delivered new ATR 42-600s to Silver Airways in the US, further expanding our regional footprint in the world’s largest marketplace, and we have ongoing programmes with airlines in Africa and Asia Pacific which give us global fleet coverage. Being able to support our customers with a range of lease options that can support their growth ambitions requires flexibility and creativity. Having additional funds available sends a positive signal to our customers and suppliers alike.”
TrueNoord’s acquisition policy is centred on new or relatively young aircraft with long leases. As a niche specialist, it is poised to take advantage of current market conditions as the global aviation sector recovery gathers pace.
“The team is expanding as the portfolio grows in terms of numbers, operators and geographies,” added Julien Millet. “We attract regional aircraft leasing specialists who share our vision and ambition to build a balanced portfolio with strong lessees.”