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Phoenix Aviation Capital Partners with AIP Capital for Landmark Financing

In a significant move for the aviation finance sector, Phoenix Aviation Capital, a leading aircraft lessor, and AIP Capital, an alternative investment management firm, announced the successful closure of a Pre-Delivery Payment Financing Facility valued at up to $300 million. This funding arrangement is poised to bolster Phoenix's portfolio as it prepares to acquire 30 Boeing 737 MAX-8 aircraft.

Details of the Financing Arrangement

The structure of the financing facility includes $175 million in immediate funding and an additional $125 million available through an accordion feature. This arrangement enables Phoenix to effectively manage its cash flow and provide the necessary resources for the pre-delivery payments of the new aircraft. The agreement comes on the heels of an earlier transaction involving ten CFM LEAP 1B aircraft engines, also facilitated by AIP Capital with the assistance of Natixis Corporate Investment Banking, which serves as the lead arranger and underwriter.

Mathew Adamo, Managing Partner at AIP Capital, expressed enthusiasm about deepening the collaboration with Natixis. He stated, "This facility represents another milestone for Phoenix as it continues to execute upon its strategy of growing its fleet of next-generation aircraft assets on lease with airlines across the globe."

The commitment from Natixis highlights the growing confidence investors have in Phoenix Aviation Capital's business model and the wider aviation market's recovery and expansion following the challenges posed by recent global events.

Legal and Advisory Support

Legal advisory roles for this transaction have been effectively divided among several firms. Vedder Price served as the legal advisor to both Phoenix and AIP Capital, while Clifford Chance took on the same role for the lenders involved. Additionally, McCann Fitzgerald provided legal expertise specifically within the Irish jurisdiction. PwC was engaged for tax advisory services as well.

About Phoenix Aviation Capital

Phoenix Aviation Capital is renowned for its commitment to financing modern aircraft that are in high demand within the aviation sector. Based in Dublin, the company is dedicated to addressing the financing needs of airlines globally. As it acquires more aircraft, Phoenix aims to cater to the evolving demands of the aviation industry, which is witnessing a gradual resurgence following significant disruptions.

About AIP Capital

AIP Capital focuses on identifying and leveraging asset-based finance opportunities, particularly in the aviation sector. The firm manages about $4 billion in assets across a diverse global investor base, showcasing its expertise and strategic insights within the market. With offices in major financial hubs like Stamford, New York, Dublin, and Singapore, AIP Capital is well-positioned to capitalize on emerging trends and opportunities in aviation finance.

For stakeholders in the aviation industry, this financing deal represents a crucial development as it not only secures essential funding for Phoenix Aviation but also illustrates the continued investment interest in aircraft leasing as a dynamic and lucrative sector.