FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–#AirTravel–Leading global aviation integration company GA Telesis, LLC (or the “Company”) announced closing a new five-year, $225 million ABL credit facility led by HSBC Bank USA and Fifth Third Bank as Joint Lead Arrangers. The syndication was met with overwhelming interest and allowed the Company to improve terms while expanding its existing bank group.
The facility comprises nine global, super-regional, and regional banks with HSBC Bank USA as Administrative Agent. The facility refinanced an existing $225 million ABL facility led by HSBC, which was set to expire in 2022. The new facility has improved availability, pricing, and other terms consistent with or better than the current facility with the support of a larger and more diverse bank group. The proceeds from the facility will be used for general corporate purposes, acquisitions, and funding future growth. In addition, the five-year term and competitive borrowing costs will provide financial stability while allowing the Company to make longer-term acquisition decisions.
“Given the challenging environment, we are pleased with the outcome of this syndication process,” said Alvin Khoo, Chief Financial Officer. “Strong interest from our existing lenders as well as the number of new banks that wanted to initiate a banking relationship with GA Telesis is a testament to the strength of our management team and our strong performance during the pandemic,” added Khoo.
The Company also renewed a $100 million unsecured credit facility, and when combined with its non-recourse facilities and managed capital pools, the Company maintains unprecedented liquidity and significant financial flexibility to execute upon its growth plans.
“Once again, HSBC and Fifth Third provided critical leadership advocating for our strong financial performance and high credit quality,” commented Abdol Moabery, GA Telesis President and Chief Executive Officer. “Ultimately, the Company’s strong operating and financial performance, especially in the last two years, drove us to significant oversubscription and better terms that position us extremely well for the future,” said Moabery.
About GA Telesis
GA Telesis is the leading provider of integrated services in the commercial aviation industry. Through the GA Telesis Ecosystem™, the Company is distinctly positioned, across six continents, to leverage its resources to create innovative solutions for its customers. Consisting of global operations encompassing leasing/financing, component solutions, and MRO Services business units for landing gear, component/composite, and turbine engine repair, as well as digital solutions, the GA Telesis Ecosystem™ provides an unparalleled resource to airlines. The Company’s core business is its mission to ensure “Customer Success,” built from a reputation for unsurpassed excellence and integrity.