A non-European client had a Bombardier aircraft that required refinancing with a large balloon payment due to be paid.

Knox Capital Solutions was able to approach suitable financiers and source a very attractive solution over a further term with a new European financier, as the original lender was no longer involved in the aviation sector. A further four-year term was arranged with an amortisation rate applied to smooth the depreciation, still incorporating a further balloon payment to preserve cash flows.

Ownership was transferred to the European financier with a suitable lease structure arranged to satisfy the financier and also the client’s operational requirements following some detailed tax advice. The transaction was concluded in time to meet the maturing payment with the original lender.

Minimal additional equity required by the client.