May 7 (Bloomberg) -- Air Lease Corp., the jet-leasing company run by billionaire Steven Udvar-Hazy, obtained a $1.7 billion credit line at a lower rate than it was paying on a smaller facility.
The four-year debt replaces a $1.1 billion portion that would have expired in May 2016, the company said today in a statement distributed by Business Wire. The Los Angeles-based company will pay interest at 1.45 percentage points more than the London interbank offered rate with no minimum on the lending benchmark, down from 1.75 percentage points more than Libor, with no floor.
“This credit facility further strengthens our balance sheet and increases our access to attractively priced capital,” Gregory Willis, senior vice president and chief financial officer, said in the statement.
JPMorgan Chase & Co., Bank of Montreal, Citigroup Inc., Credit Suisse Group AG, Bank of America Corp., Royal Bank of Canada, Royal Bank of Scotland and Wells Fargo & Co. arranged the financing, according to the company.
In a revolving line of credit, money can be borrowed again once it’s repaid.
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