International law firm Milbank, Tweed, Hadley & McCloy LLP, led by Global Securities partner Doug Tanner and Transportation and Space Finance partner Drew Fine, acted as special New York counsel to Credit Agricole Securities and Goldman, Sachs & Co. in an offering of approximately US$288 million 1.829% Senior Notes Due 2024 by Carobao Leasing LLC, which notes are guaranteed by Export-Import Bank of the United States (“Ex-Im Bank”).
This is the first offering of notes guaranteed by Ex-Im Bank in which the proceeds will be used exclusively to prefund aircraft purchases and the second offering with a prefunding feature. The proceeds of these notes will be used to finance the purchase of two Boeing 777-300ER aircraft upon delivery. The issuer will lease the aircraft to LATAM’s Brazilian airline TAM.
LATAM Airlines Group S.A. was formed in June 2012 by the merger of LAN Airlines and TAM Airlines, which created the world’s second largest airline by market value.
Mr. Tanner commented, “This offering demonstrates the continued attractiveness of the prefunding structure and is the latest in a trend of tighter pricing for Ex-Im Bank guaranteed notes.”
Other Milbank attorneys involved in this transaction included Global Securities associates Kevin MacLeod, Jeremy Steckel and Ranee Adipat, Transportation & Space Finance associate Kevin Meier Kertesz and Tax partner Andrew Walkerand associate Randy Clark.
