Graham Warwick/WASHINGTON DC
DaimlerChrysler's general aviation (GA) finance arm debis Capital Services has purchased an $800 million GA and business aircraft financing portfolio from US aerospace giant Raytheon.
The portfolio covers loans and leases on more than 300 aircraft, ranging from Beech Bonanza piston singles to Hawker 800XP business jets, sold by Raytheon Aircraft. Beech 1900 regional airliners financed by the manufacturer are not included.
The transaction is designed to improve Raytheon's finances by reducing its overall bank exposure. The company says the proceeds will be used to reduce off-balance-sheet debt at Raytheon Aircraft.
As part of the deal, Norwalk, Connecticut-based debis will provide financing for future sales of Raytheon's 11-model GA and business aircraft range. This is expected to generate up to $500 million a year in new finance business.
The range of financing options available worldwide from debis is expected to help boost Raytheon Aircraft sales. The current portfolio is balanced equally between US and overseas customers.
Amsterdam-based sister company debis AirFinance, a specialist in airliner leases, is also pursuing an expansionist strategy and has emerged as a potential buyer for Bouillion Aviation Services. The Raytheon deal increases the debis companies' aircraft financing activity by 20%, to $4.5-$5 billion.
Source: Flight International
