Hawker pledged aircraft to satisfy lenders
Hawker Beechcraft used aircraft and engines as collateral for both its forbearance agreement and a new senior tranche agreement with three lenders. The terms also required it to provide a business plan and by April 30 (or May 15 if most note holders agree) it needs to provide details of its restructuring and new financing terms.
Full article, with tables showing debt stucture available to members only
Hawker Beechcraft used aircraft and engines as collateral for both its forbearance agreement and a new senior tranche agreement with three lenders. The terms also required it to provide a business plan and by April 30 (or May 15 if most note holders agree) it needs to provide details of its restructuring and new financing terms.
Full article, with tables showing debt stucture available to members only::join::[/nonmember][ismember]
Hawker Beechcraft used aircraft and engines as collateral for both its forbearance agreement and a new senior tranche agreement with three lenders. The terms also required it to provide a business plan and by April 30 (or May 15 if most note holders agree) it needs to provide details of its restructuring and new financing terms.
The manufacturer says it breached financial covenants in December 2011 relating to its secured loans.
It has pledged six Hawker 4000s and four Beechcraft Kingair 300s and one Beechcraft 350 to the providers of the new senior tranche loan and registered these mortgages with the FAA.
Hawkers Beechcraft’s available debt
| Debt | $ million | Coupon | Matures |
| Senior tranche term loan | 124.5 | Credit agreement base plus 11% | 29 June 2012 |
| Revolving credit facility | 240.3 | 2013 | |
| Term Loan B – 1st Lien | 1213 | L+200bp | 26 March 2014 |
| Term Loan B – 2nd Lien | 198.5 | L+850bp | 26 March 2014 |
| Letters of credit | 75 | ||
| Total secured debt | 1851 | ||
| Senior unsecured notes | 183 | 8.5% | 1 April 2015 |
| Senior PIK Toggle notes | 303 | 8.875% | 1 April 2015 |
| Senior subordinated notes | 145 | 9.750% | 1 April 2017 |
Hawker Beechcraft’s debt renegotiation time line
The recent forbearance agreement and third amendment is the fourth time that Hawker Beechcraft has been forced to work with lenders since it was acquired by Goldman Sachs and Onex
| Date | Agreement | Notes |
| 26 March 2007 | Credit Agreement | Hawker Beechcraft is acquired by Onex and Goldman Sachs. |
| 19 December 2008 | First Amendment | Hawker renegotiated following effect of credit crunch on business jet demand |
| 9 November 2009 | Second Amendment | |
| 29 November 2009
| Incremental Supplement Agreement | |
| 27 March 2012 | Forbearance agreement and third amendment | New agreement signed after Hawker breeches covenants. Manufacturer advised by Perella Weinberg Partners |
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