GE facilitates UK Government guaranteed financing milestone for Atlas Air
- Landmark for UKEF as it takes lead on financing solution with EXIM
- One of the largest ECA-backed financing deals for the aviation maintenance, repair & overhaul industry
London, UK - July 18, 2018 - GE (NYSE: GE) facilitated an alternative financing package for Atlas Air, Inc. (“Atlas Air”), a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global provider of outsourced aircraft and aviation operating services. The deal reached a milestone as funding under the framework facility hit the $100MM mark. The finance solution is funded by Apple Bank and guaranteed by UK Export Finance (UKEF), UK’s export credit agency and partially reinsured by Export-Import Bank of the United States (EXIM), the export credit agency of the US.
The deal, in aggregate, stands as one of the biggest export credit agency (ECA) financing solutions for engine services in the aviation sector. The financing is structured by the parties to allow Atlas Air to draw funding in tranches as work is completed - the current milestone reflects the fifth tranche to be drawn under this program.
This landmark financing program utilizes the long-standing reinsurance agreement between UKEF and EXIM - the financing led by UKEF, supports the provision of aircraft engine overhaul services performed at GE’s Caledonian facility in Prestwick, Scotland, with EXIM providing reinsurance for export of key technology from the US.
Guto Davies, Managing Director - Global ECA Advisory and Execution Leader, GE, said: “We are excited to have been a part of the initiative to create this financing solution for a strategic customer of GE. This facility will enable overhaul of up to 39 engines for Atlas Air. We worked closely with the UK and US governments and our aviation customer to develop an attractive solution to finance this investment. This is a perfect example of how we can bring private and public organisations to the table to create innovative financial structuring solutions for our customers that benefit both the UK and US aviation industries.”
Baroness Fairhead, UK Minister of State for Trade and Export Promotion, said: “I am delighted that the UK Government, through UK Export Finance, is supporting this GE Caledonian contract, securing jobs and investment in Scotland. It is a fantastic demonstration of the UK's world leadership in the civil aerospace sector, which is creating significant global demand for UK capability and expertise, and leading to opportunities that the Department for International Trade is helping to turn into reality for UK companies.”
Jeffrey Goettman, EXIM Executive Vice President and Chief Operating Officer, said: “EXIM Bank and Britain’s export credit agency, UKEF, have a long, mutually beneficial history of co-operation in support of our aerospace industries. We are pleased to co-finance American-made GE Aviation aircraft engine components with UKEF. We look forward to future co-financings with UKEF that sustain aerospace manufacturing and employment in the U.S.”
William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide, said:
“We are very pleased to participate in this collaborative financing solution to support our engine overhaul program. This facility is a great example of our commitment to working with valued partners to secure favorable and innovative financing for our business.”
The financing supports an engine overhaul program for Atlas Air and will see GE supply and install energy efficient Performance Improvement Program (PIP) kits to upgrade up to 39 GEnX-engines. UKEF played an instrumental role in the structuring of this transaction which emphasises the depth of co-operation between the organisations. The partnership was recognised in a wide-ranging Memorandum of Understanding signed in 2015.
About GE Energy Financial Services
A strategic GE Capital business, GE Energy Financial Services is a global energy investor with 35+ years managing assets through multiple energy cycles. Drawing on its technical know-how, financial strength and strong risk management, GE Energy Financial Services invests in and provide capital solutions for long-lived and capital-intensive projects and companies that help meet the world’s energy needs. It is headquartered in Connecticut with regional hubs in London, Houston, Hong Kong and Nairobi. For more information, visit www.geenergyfinancialservices.com and follow us on Twitter @GEEnergyFinServ.
About GE Aviation
GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components, integrated digital, avionics, electrical power and mechanical systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings and is part of the world’s Digital Industrial Company with software-defined machines and solutions that are connected, responsive and predictive. For more information, visit us at www.ge.com/aviation. Follow GE Aviation on Twitter at http://twitter.com/GEAviation and YouTube at http://www.youtube.com/user/GEAviation.
GE (NYSE: GE) is the world's Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com.
About Atlas Air Worldwide
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings, and other information may be accessed through the company’s home page, www.atlasir.com.
About UK Export Finance
UK Export Finance (UKEF) is the UK’s Export credit agency and a part of the UK Government’s Department for International Trade. With a mission to ensure that no viable UK export fails for lack of finance or insurance from the private sector, UKEF provides finance and insurance to help UK companies win, fulfil and get paid for overseas contracts, and help their overseas buyers access the Finance they need to buy from the UK.
EXIM is an independent and self-sustaining federal agency that provides competitive and necessary export credit to overseas purchasers of U.S. exports to promote and support American jobs. A robust and fully functioning EXIM can assist the United States in leveling the global playing field for U.S. exporters when they compete against foreign companies that receive the support of their national export credit agencies. EXIM also contributes to U.S. economic growth and the support of more than a million jobs through the support of thousands of small and medium-sized enterprises (SMEs) around the country. Since 2000, EXIM has provided $14.6 billion to the U.S. Treasury after paying for all of its administrative and program expenses.
GE Energy Financial Services
Jaclyn Cochrane GE Energy Financial Services +1 203 961 2934 firstname.lastname@example.org
Arti Mohan GE Energy Financial Services +44 207 160 1291 email@example.com
GE Energy Financial Services
+44 20 7160 1291