Cargolux closes pre-funded Exim bond for 747F

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Luxemburg-based Cargolux Airlines has returned to the US Export-Import Bank (Ex-Im) -guaranteed bond market to finance a new Boeing 747-8F delivery.

The $162.3 million pre-funded bond was arranged Credit Agricole-CIB and Goldman Sachs. The banks also act as joint bookrunners.

Through the vehicle VCK Lease the deal priced at a coupon of 2.591%, equivalent to market swaps plus 53 basis points (bps).

The 747-8F, MSN 38078, is expected to deliver in 24 July. The notes will mature in July 2026.

Cargolux also has one delivery slated for September and another for March 2015. These will be financed in the commercial banking market.

The transaction marks the fourth time the cargo carrier has used the capital markets for financing an aircraft. In 2013, Cargolux financed three new Boeing 747-8F deliveries via the capital markets.

Its March 2013 debut bond priced at market swaps plus 47 basis points for a coupon of 1.859%.

In May, the cargo carrier closed a $156 million bond featuring a 12-year stretched overall amortisation repayment (SOAR) loan arranged by Credit Agricole CIB. BNP Paribas was the arranger and sole bookrunner in the transaction. Credit Agricole CIB was also the agent of the SOAR loan. The transaction priced at a 1.736% coupon.

In September 2013, the $156 million pre-funded bond arranged by BNP Paribas. The transaction priced at 2.817% a coupon.

Cargolux operates a 20-strong fleet comprising nine 747-8Fs, nine 747-400F/ERFs and two 747-400BCFs. It has orders for five new 747-8Fs.