Textron subsidiaries Cessna and Bell Helicopter will have an additional source to fund international sales with the authorisation on 21 May of a $500 million direct-loan facility from the US Ex-Im bank.
Ex-Im officials says Textron approached the bank late last year to discuss the possibility for a loan after the decline of capital markets that Textron's financing arm traditionally uses for customer loans. Maximum repayment of loans accepted by the bank will be 10 years, based on international agreements, with financing of up to 85% of the invoice price of the aircraft or 100% of the US content, says the official.
The government financing will be available to Cessna aircraft and Bell helicopter buyers planning to take delivery before December 2010, with Textron providing the short-term funding which the government will later reimburse.
It is not clear how the new financial source will help sales for the companies, particularly Cessna, which has slashed this year's production goals by 40% and let go thousands of workers due to cancellations and weak orders.
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"The government financing is another source for funding for exported business jets," says Cessna. "It's helpful, but it's not like there were no other avenues," he says, adding: "It's just another avenue for us to go to for funding."
The Ex-Im package could boost Cessna's new $8.4 million six-seat Citation CJ4 light jet, which is earmarked for certification later this year and service entry in early 2010. Pictured in assembly is the third CJ4 production conforming aircraft, the first of the type to be built with production tooling on the new assembly line.
Source: Flight International
