AerCap Credit Agreement: What You Need to Know

AerCap is one of the largest aircraft leasing companies in the world, and it recently announced a major credit agreement with a group of leading global banks. The AerCap Credit Agreement will provide the company with substantial financing to continue its growth and expansion initiatives. This article will explore the details of the credit agreement and what it means for AerCap and the aviation industry as a whole.

The AerCap Credit Agreement

On February 4, 2021, AerCap announced that it had entered into a new credit agreement with Citibank, JPMorgan Chase, Wells Fargo, and Bank of America, among others. The new agreement provides the company with a revolving credit facility of $3 billion and a term loan facility of $1 billion, both of which will mature in February 2026. This represents a substantial increase from the company`s previous credit agreement, which was a revolving credit facility of $2.7 billion and a term loan facility of $800 million.

The purpose of the credit agreement is to provide AerCap with additional funding to continue its operations and growth initiatives. AerCap is already one of the largest aircraft leasing companies in the world, with a portfolio of over 1,000 aircraft and a total asset value of $43.7 billion. The company is known for its diverse portfolio of aircraft types and for its long-term relationships with major airlines around the world.

What It Means for AerCap and the Aviation Industry

The new credit agreement is a significant milestone for AerCap and the aviation industry as a whole. It demonstrates that leading global banks have confidence in the future of the aviation industry and in AerCap`s ability to continue its growth trajectory. The new funding will enable AerCap to continue investing in new aircraft, expanding its customer base, and pursuing strategic acquisitions.

The credit agreement also comes at a time when the aviation industry is beginning to recover from the impact of the COVID-19 pandemic. Air travel demand was severely impacted by the pandemic, leading to a decrease in revenue for airlines and aircraft lessors. However, as vaccines are rolled out and travel restrictions are lifted, the industry is expected to bounce back in the coming years.

In conclusion, the AerCap Credit Agreement is a significant development for AerCap and the aviation industry. The substantial financing provides the company with the funding it needs to expand and continue its growth initiatives, while also demonstrating the confidence that leading global banks have in the future of the aviation industry. As the industry continues to recover from the pandemic, it will be interesting to see how companies like AerCap adapt and thrive in the new normal.