Posted on: 07 July 2011 by Ross McSweeny
Norwegian has mandated ING on a $550 million financing facility which covers term financing for 11 Boeing 737-800HGWs scheduled for delivery between summer 2011 and the end of 2012 plus pre-delivery financing for aircraft delivering during the same period.
The pre-delivery financing will be used by Norwegian to finance/refinance a portion of the scheduled pre-delivery payments due to Boeing, and will be taken out by a long-term financing to be supported by the Export-Import Bank of the United States (Ex-Im Bank).
ING is the sole lender on the pre-delivery financing and is arranging the Ex-Im Bank guaranteed take-out financing for all 11 Boeing 737-800 aircraft. The first tranche of Ex-Im Bank-guaranteed financing covering aircraft delivering in 2011 was closed with TD Bank, and a commitment for the Ex-Im Bank-guaranteed financing for the remaining aircraft delivering in 2012 is expected to be finalised with another lender by the end of July 2011.
Frode Foss, Norwegian’s chief financial officer, commented, "We are very pleased to announce that we now have secured financing of our aircraft deliveries to late 2012. We are grateful for the strong support that we have received from ING and their ability to participate as a multi product financier for Norwegian."