Philippine Airlines enters debt financing agreement GECAS and Novus Announce

Philippine Airlines entered (28-Jun-2018 ) a debt financing agreement with GECAS and Novus Aviation Capital. PK AirFinance, a GECAS company, will provide senior debt for the acquisition of four 2018 manufacturer A321neo aircraft, while Novus' Tamweel Aviation Finance, a junior debt fund dedicated to the financing of Airbus aircraft, will extend a mezzanine loan for each aircraft. The loan will finance PAL's acquisition of the aircraft and spare engine, part of the airline's strategy to grow its medium-range routes while modernising its fleet. The first aircraft was delivered in May with the remaining three scheduled to deliver before the end of 2018. Novus Aviation Capital managing director Hani Kuzbari said the combination of asset type and stakeholders involved in this transaction "makes it appealing" for both Novus and Tamweel Aviation Finance, and the debt structure represents "an attractive value proposition". [more - original PR - GECAS] [more - original PR - Philippine Airlines]