A cross-border team (London, Hamburg and Singapore offices) from Watson, Farley & Williams has advised Singapore Airlines on the sale and leaseback of an Airbus A380, with Hamburg-based closed-end funds initiator Lloyd Fonds. The A380 is the world’s largest passenger airline.
Singapore Airlines has financed one Airbus A380 in the German KG market. Hamburg-based Lloyd Fonds purchased the aircraft from Singapore Airlines with a $74m bridge loan and $111m senior debt from three banks. The KG fund will lease the aircraft to Singapore Airlines for 10 years, with options to extend the lease.
EastMerchant Capital was overall arranger and lease negotiator. Australia and New Zealand Banking Group (ANZ) acted as the debt arranger and facility agent for the $111 senior debt facility. CIC and an undisclosed US-based financier provided the $74 million equity bridge loan, the short-term debt financing which KG funds need to acquire an aircraft before placing equity with investors.
Norton Rose advised Lloyd Fonds. Clifford Chance advised the senior lender, whilst White & Case represented the equity bridge financiers.
Partner Siva Subramaniam, who led on the deal, said: “We were delighted to act for Singapore Airlines in this innovative deal. The airline is a new client of the firm’s and we look forward to advising it on many future successes.”
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