October 26, 2012 – Chicago, IL |
RPK Capital Partners announced today that it has closed a deal with American Airlines to lend the airline $268 million.
As terms of the deal, 10 mid-life aircraft will be used as collateral. The eight-year term secured loan proceeds will be to be used to refinance existing debts and manage general operating costs.
Debt transactions have been part of the firm’s strategy since 2010, when private equity backer The Carlyle Group committed its initial $600 million to the RPK Capital Partners. “It was always going to be part of our strategy”, says company President James Raff. “RPK is an aviation investment company and not just a lessor. At the right pricing we can buy bonds and issue debt, while at the same time continue to pursue our traditional leasing and trading business” he adds.
Wells Fargo Bank Northwest, National Association, will act as Security Trustee for the transaction.