Deals completed by JetLoan Capital
Sam Harris (pictured), president of JetLoan Capital states: “Most financial analysts are saying that interest rates are on the way up. In fact, as it relates to fixed rate jet loans, we have seen about a 50-basis point increase since the end of last year. Most banks that lend on new and used business jets prefer to structure the loans based on a five-year term and amortization periods of 10-15 years, depending on the age of the aircraft, usage characteristics, and other factors. A majority of these lenders index their fixed rate loans to a spread over the five-year interest rate SWAP. The calculation is as follows; Five-year SWAP 2.70 +spread 2.0 = fixed interest rate of 4.70%.”
“So, since SWAPs have moved up, the lender has to raise the fixed rate offering to maintain the same spread. Depending on the size of the loan, fixed interest rates are moving into the 4.50-5.0% range. We have not seen aircraft borrowing rates this high in years, and most people believe that interest rates are going higher from here. If you have a maturing aircraft loan, it may be better to refinance it now (if you can do so without a pre-payment penalty) than to wait.”
JetLoan Capital have been busy and have completed three business aviation aircraft deals in the past few weeks.
The first transaction is for a 1996 built Gulfstream GIVSP at 75% Loan To Value (LTV), 5-Year Term with a 20-Year Amortization at a Fixed Rate of 4.5% for a Southeast US based client.
The second is a 2010 built Beechcraft Baron G58 for a South US client at 80% LTV, 5-Year Term with 15-Year Amortization and Fixed Rate 4.8%.
The third is a 2009 built Embraer Phenom 100 for a high net worth individual located in Western US. The terms are 75% LTV, 60-Month Term, with a 96-Month Amortization and a Fixed Rate 4.84%.
Finally, a Falcon 900 client describes working with Melanie Malanowski, Operations Manager at JetLoan Capital in closing a deal: “Not only are you the epitome of efficiency, and a pleasure to work with, but you also rock!” says Walter and his assistant Janice.