Aircraft parts and overhaul specialist GA Telesis has closed a US$225 million asset-based lending (ABL) facility with HSBC Bank USA and Fifth Third Bank as joint lead arrangers. The company, based in Fort Lauderdale, Florida, says the syndication of the five-year faciity was met with overwhelming interest, and allowed it to improve terms while expanding its existing bank group.

The firm is 42.9% owned by Tokyo Century Corporation and 10% by All Nippon Airways Trading Company. 

The facility comprises nine global, super-regional, and regional banks with HSBC Bank USA as the administrative agent. The facility refinanced an existing US$225 million ABL facility led by HSBC, which was set to expire in 2022.

The new facility has improved availability, pricing, and other terms consistent with or better than the current facility with the support of a larger and more diverse bank group.

The proceeds from the facility will be used for general corporate purposes, acquisitions, and funding future growth. In addition, the five-year term, and competitive borrowing costs, will provide financial stability while allowing the company to make longer-term acquisition decisions.

“Given the challenging environment, we are pleased with the outcome of this syndication process,” says chief financial officer Alvin Khoo. “Strong interest from our existing lenders, as well as the number of new banks that wanted to initiate a banking relationship with GA Telesis, is a testament to the strength of our management team and our strong performance during the pandemic.”

The company also renewed a US$100 million unsecured credit facility, which, when combined with its non-recourse facilities and managed capital pools, provides it with unprecedented liquidity and significant financial flexibility to execute its growth plans, GA Telesis says.