LCI closes $55 million capital markets loan

Macro of Alexnader Hamilton portrait on the U.S. ten dollar bill.

Lease Corporation International (LCI) has closed its first capital markets financing with a $55 million five-year loan. CIT Group and Prudential Capital Group led the issue.

The helicopter lessor will use the cash to buy six new Leonardo AW139 and AW169 helicopters. All of the helicopters will be leased to Emergency Medical Services (EMS) and Search and Rescue (SAR) operators.

“LCI’s fast-growing helicopter leasing platform has now achieved the size for us to undertake our maiden capital markets placement,” said Jaspal Jandu, CFO, Lease Corporation International. “This transaction enables us to diversify our capital base and lower our cost of capital, further increasing the efficiency of our operations.”

The loans were sold to a range of US banks and financial institutions.

“CIT Group is delighted to continue its longstanding relationship with LCI by assisting in its first capital markets financing,” said John Heskin, managing director,  CIT Aerospace, Defence and Government Finance. “With LCI’s proven track record as a diversified helicopter lessor, it is no surprise that this placement received strong demand.”

LCI has a portfolio of $750 million of helicopters including orders.

Borrower: LCI Aviation
Date: February 13, 2018
Size: $55 million
Structure: Capital markets loan
Term: Five years
Underwriters: CIT Group, Prudential Financial
Notes: Used to buy six new AW139/AW169 helicopters