LONDON – US-based leasing company Aviation Capital Group announced the securing of 2 new A321LRs for TAP Portugal. New rounds of financing signal a positive rebound in the aviation industry.
The latest round of financing marks the fifth time with ACG’s Aircraft Financing Solution (AFS) program of its $650 million funding security platform.
This enabled ACG to enable loans to TAP Portugal, and to partner with Novus Aviation Capital (Novus), which provided mezzanine financing. As a result, AFS and Novus were capable of offering a lucrative financing package to TAP Portugal.
Andrew Falk, Managing of ACG, reacted positively to the latest round of financing.
He said: “ACG is grateful to have had the opportunity to work with TAP and Novus on this financing. We
were able to draw upon our established relationship with Novus to effectively meld the senior and junior loans and to provide TAP with timely and efficient financing. Moreover, we were finally able to bring to fruition ACG’s long-held desire to work with TAP again.”
Mamoun Kuzbari, Chief Commercial Officer, Novus Aviation Capital further added:
“We are delighted to complete this transaction with both ACG and TAP, continuing to support an existing airline customer”
Kuzbari further added:
“Not only are we building on our relationship with this additional financing for TAP, but we are also very proud to have a strong foundation with ACG that will allow both parties to collaborate on future opportunities.”
“This debt structure is an attractive value proposition and the combination of asset type and stakeholders involved makes it appealing for both Novus and Tamweel Aviation Finance, one of the industry’s leading mezzanine loan providers,”.
New Opportunities for TAP?
The new rounds of financing from both ACG and Novus allow the airline to efficiently credit their aircraft and provide flexibility for the airline to adapt to the current ever-changing environment of the aviation industry.
The A321LRs of TAP has proven to be very successful for the airline, as they have managed to fly to destinations on the East Coast of the United States like Newark and to secondary cities in Brazil, like Recife.
In fact, Gonçalo Pires, Chief Financial Officer of TAP Air Portugal expressed his satisfaction with the creditors.
He said: “TAP is very pleased to work with ACG and Novus on this financing and we are very confident that these two additional A321neo LR aircraft that are joining our fleet, already one of the youngest and most efficient in the world, will contribute to the success of our airline.”
It looks like this will not be the last round of financing by ACG and Novus to TAP Portugal, as the financing package of the lessors aligns with TAP Portugal’s expansion plan.
ACG was founded in 1989 and is world renounced for its asset management of commercial aircraft. The group manages over 440 owned aircraft as of December 31, 2021, to over 90 airlines in approximately 45 countries.