Aircraft Finance
Seabury can arrange various types of aircraft financing, including pre-delivery payment facilities, public and private secured debt, bank credit facilities, private equity, manufacturer backstop financing, export credit agency financing, operating leases and tax leases. Seabury has financed over 200 aircraft totaling over $6 billion in the past few years for airlines around the world and maintains an active dialogue with over 150 investors worldwide. Seabury’s experienced executives leading and advising a competitive bidding process will help achieve the very best possible rates and terms available. On behalf of clients Seabury can evaluate all aircraft financing markets to determine the best source of financing.
Key services are:
Bank Mortgage Financing
Seabury has experience arranging bank mortgage debt financing for new and used aircraft purchases. Seabury can help craft the credit presentation and manage the Request for Proposal process and the roadshow to achieve the highest advance rates, lowest interest rates, and best combination of terms possible.
Operating Leases
Seabury has extensive experience arranging and structuring operating leases and sale leasebacks on behalf of clients. Seabury’s strong relationships with the major aircraft lessors, airlines, private equity and hedge fund players can help in sourcing aircraft, negotiating economics, and modeling lease vs buy analysis. Seabury can advise and manage the sale leaseback process and is knowledgeable about the likely buyers for particular aircraft types. Seabury can provide assistance and expertise to maximize proceeds from sale, minimize costs associated with lease, evaluate sale/lease tradeoffs, maximize flexibility, and negotiate consents.
Lease Renegotiation
As an advisor in seven out of the ten recent largest restructurings in the airline industry, Seabury has built up a reputation as a tough, disciplined and effective negotiator for its clients in both distressed and non-distressed situations. Seabury’s experience in restructuring over $10 billion of lease obligations and its relationships with lessors can help its clients materially reduce their lease rates, as well assist in early termination of leases without paying penalties as part of a fleet transition or restructuring program.
Secured Debt Restructuring
With vast experience in airline restructuring, both in and out of court, Seabury executives can assist their clients in devising and implementing a comprehensive approach to restructuring secured debt. Seabury can help its clients negotiate a variety of terms, on a case-by-case basis, including reducing interest payments and amortization, extending maturities and converting debt to equity or convertible securities. Over the last few years Seabury has restructured several billion dollars of secured debt for airlines around the world.
Tax Leases
Single Investor Leases and Leveraged Leases typically qualify as an operating lease for accounting purposes and a true lease for tax purposes. This off balance sheet financing typically can provide long term (16-20 years) 100% financing. Seabury has extensive experience arranging, structuring and evaluating tax leases and their implications including, NPV benefit on an after tax basis compared to owning, EPS/CASM improvement, elimination of residual risk, credit rating benefit, financial diversification and purchase and extension options.
