Deal Description

The company is recently incorporated in GIFTS city (a notified SEZ) in Ahmedabad. They are looking to acquire 5 helicopters initially from Airbus at a cost of $3M each. While Airbus will not give a comfort letter regarding the repayment, they will be willing to recommend the company to any lender for disbursing the loan. The loan proposal for 2 helicopters has been submitted and is being processed by SBI and the company is now looking to finance the remaining 3 helicopters. The promoter is paying 10% of the helicopter cost from his own resources and they are looking for a foreign currency loan of $10M, at a cost not exceeding 3%p.a.. for the balance 3 helicopters against hypothecation of the helicopters as security. There will be no hedging costs since the company will be billing the air charter companies also in foreign currency. Additionally, insurance will be taken against default of repayment of lease rentals by the air charter companies to ABC Services Pvt. Ltd.. For the comfort of the lenders, the company is also willing to: - create an SPV whose shares can be pledged with the lender. The loan will be taken by the SPV and the helicopters will be bought by the SPV and leased to ABC Aviation Services for sub-lease to the air charterers; - escrow the lease rentals from the air charter companies into a separate account in favour of the lenders Helicopter leasing is a huge untapped market in India for which the demand is buoyant and not depressed like the traditional commercial airline market. The demand is from corporates for business travel (eg. Chennai-Bangalore, Bangalore-Hyderabad, Lucknow - Delhi etc.) and religious/medical etc. mobility. Landed Cost of 1 Helicopter & Accessories : € 3 Million • To Purchase 5 Helicopters In 2021 and 2022 • In a phased manner • Total Requirement : : € 15 Million Debt Sought : Upto USD $15 M • Founder Promoter’s Margin : Upto 10% • Tenure : 8 - 10 Years; Interest : 3% p.a on WDV • 100% secured with Collateral to Lenders: 5 Helicopters

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