Vedder Thinking | News Global Transportation Finance Team Assists in Groundbreaking ECA-Backed Capital Markets Transaction
Vedder Price attorneys Joshua D. Gentner and Antone J. Little, members of Vedder Price's Global Transportation Finance team, recently represented client Export-Import Bank of the United States in the first-of-its-kind prefunded Export Credit Agency-backed capital markets transaction.
This innovative prefunding method was developed to enable an airline to ensure the availability of financing for future deliveries and lock in financing costs in advance. The proceeds of the prefunded bond are placed in a pledged account until the delivery of the aircraft.
The capital market-funded Ex-Im Bank guaranteed aircraft financing will be used to refinance a bank-funded Ex-Im Bank guaranteed loan for two aircraft and to prefund the financing of two additional aircraft, which are scheduled for delivery in July and August of 2012. The aircraft will be operated by LATAM Airlines Group S.A.
Vedder Price is a business-oriented law firm composed of over 260 attorneys with offices in Chicago, New York and Washington, DC and London. The firm offers a wide range of services in three core practice areas: Corporate, Labor and Employment and Litigation. With more than 45 professionals across all four offices, the Global Transportation Finance team is one of the largest, most experienced and renowned finance practices in the world. The diversity of the group's client base, transaction structures and asset types affords unique insights into market standards and practices.