CIT Agents $325MM LCI Facility
CIT Group announced it served as joint lead arranger and administrative agent in a $325 million senior secured credit facility to LCI Helicopters (LCIH), the helicopter leasing subsidiary of Lease Corporation International.
The facility will be used to acquire new medium and heavy twin engine helicopters for onward lease to helicopter operators and includes an option to increase the facility size to $425 million. Financing was provided by CIT Bank. Terms of the transaction were not disclosed.
“As a global leader in transportation finance, we are pleased to have arranged this financing that will allow LCIH to grow their fleet as they look to meet the increasing market demand for medium and heavy twin engine helicopters,” said Chris Cantwell, group head and managing director of CIT Corporate Finance, Aerospace & Defense. “These helicopters are in high demand as operators, particularly those in the oil and gas, search and rescue, and emergency medical services sectors, seek the most advanced technology equipment to meet their needs.”
Neil Wessan, group head and managing director, CIT Capital Markets, said, “We were successful in syndicating this transaction as the capital markets realize that demand for these types of assets is expected to increase steadily and will be driven by growth in the need for heavy lift helicopters on a global basis, combined with fleet replacement. We’re pleased to have put our extensive sector knowledge and financing expertise to work to allow LCIH to capitalize on these favorable industry dynamics.”
Jaspal Jandu, LCI’s CFO, said, “Helicopter leasing is a new and dynamic development in the aviation sector. In offering flexible financing options and a solid capital base to our lessees, we are pleased to have the support of our banking partners which demonstrates continued confidence and assurance in our approach.”