In one of the largest unsecured credit financings ever in the aircraft leasing industry, Milbank, Tweed, Hadley & McCloy represented a group of leading financial institutions in providing an $850 million revolving credit facility for leading aircraft lessor Aviation Capital Group.

New York transportation partner Drew Fine, chair of Milbank’s Finance practice, led the team advising lenders, including JP Morgan Chase as lead arranger, along with Citigroup Global Markets Inc., RBC Capital Markets, and BNP Paribas.

The transaction amends and restates a $375 million revolving credit facility for ACG from 2012, doubling it and bringing aboard additional underwriters. Proceeds will be used for ACG’s general corporate purposes and potentially to purchase additional aircraft.

Newport Beach, CA-based ACG owns or manages some 250 full-size jet aircraft.  The company leases its planes to approximately 90 airlines in 40 countries and is one of the industry’s leading players.

“This was a complex transaction that included working with ACG’s existing lenders to incorporate new negotiated financing terms, as well as liaising with the company’s new lenders for their appraisal of the credit documents,” explained Mr. Fine.

“The financing represents a timely move for ACG in that there are so many factors driving the aircraft leasing sector toward further expansion, including growing need for new planes from emerging markets in Asia, the Middle East, Latin America and elsewhere, along with continued recovery of the global economy, and the appetite for airlines to invest in newer and more fuel-efficient aircraft,” he added.

Milbank Tax partner Andrew Walker and transportation associate Andrew Park also represented the lenders in the transaction.