Investec arranges $870 million debt facility in partnership with FPG Amentum

Investec has arranged a senior debt facility of approximately $870 million to support the acquisition of an 11-aircraft widebody portfolio by a fund advised by BC Partners Credit, in partnership with aviation asset manager FPG Amentum.

The financing is secured against a portfolio comprising five Boeing 777-300ERs, three Boeing 787-9s, two Boeing 787-10s and one Airbus A350-900. The aircraft are leased to Emirates, Etihad, Singapore Airlines and another tier-one Middle Eastern airline group.

Investec acted as mandated lead arranger and bookrunner alongside CaixaBank and Mashreq Bank. The bank also served as swap counterparty for the facility’s interest-rate hedging, while Kookmin Bank acted as co-arranger for part of the portfolio.

According to Investec, the transaction required a tailored financing structure because of the mix of aircraft types, lease tenors, rental currencies and market conditions.

Clayton Woollgar, head of structured finance for aviation at Investec, said FPG Amentum required a financing partner able to understand “the complex detail of the portfolio acquisition” and structure financing across “11 aircraft, four airline groups, separate lease profiles, different maturities and multiple currencies.”

He added that the deal demonstrated the ability to deliver “financing at scale that is competitive and flexible” despite “a more complex market environment.”

Dublin-based FPG Amentum, which manages aircraft investments on behalf of investors, said the financing was important to completing the acquisition.

Chief executive Rupert Leggett said Investec’s team understood the portfolio and transaction requirements, helping provide “the certainty needed for an important acquisition in a challenging market environment.”

Milbank LLP acted as lead counsel for the financing parties on the transaction.