Ex-Im Bank Approves $350 Million Loan Guarantee to Support Textron's Exports of Cessna Aircraft and Bell Helicopters
May 14, 2012
(Ex-Im Bank)
GENEVA, SWITZERLAND: The Export-Import Bank of the United States (Ex-Im Bank)
has approved a guarantee of a $350 million loan facility to provide the funds to
assist Textron Inc. in financing the exports by two of its companies, Cessna
Aircraft Company and Bell Helicopter Textron. The guaranteed lender is PNC Bank
in Pittsburgh, Pa.
The Ex-Im Bank-guaranteed loan facility will enable Textron's Finance segment to
provide financing to international customers that take delivery of new Cessna
aircraft and Bell commercial helicopters. The facility will be guaranteed by
Textron's captive finance company, Textron Financial Corporation (TFC). The
repayment term is 12 years.
This is the second financing facility approved by the Bank to assist TFC in
supporting Textron's exports. In May 2009, Ex-Im Bank authorized a $500 million
direct-loan facility that has helped to finance the export of over 100 Cessna
business jets and six Bell helicopters.
The announcement of the new facility was made today by Ex-Im Bank Chairman and
President Fred P. Hochberg at the 12th annual European Business Aviation
Convention and Exhibition (EBACE), being held in Geneva, Switzerland, May
14-16.
"Business aircraft and helicopters are an important part of America’s aerospace
industry, which is helping to boost U.S. exports to all-time highs. Ex-Im Bank
is pleased to approve a second financing facility to support Textron's exports
of Cessna aircraft and Bell helicopters. We anticipate that this facility will
add to the success of the first such financing for Textron, which has helped to
support hundreds of manufacturing jobs in Kansas, Georgia and Texas," Chairman
Hochberg said.
"This guaranteed loan facility for the export of Cessna and Bell aircraft is a
wonderful example of Ex-Im Bank fulfilling its purpose – facilitating exports to
foreign markets where financing isn't otherwise readily available and preserving
American jobs. We greatly value our relationship with Ex-Im Bank, and we are
proud of the work they do," said John Klopfer, president and CEO of Textron's
Aviation Finance Group.
The Ex-Im Bank-guaranteed loan facility will enable Textron’s Finance segment to
continue to finance exports of Cessna aircraft and Bell helicopters with
competitive interest rates and repayment terms. TFC will be the ultimate source
of repayment for the loan facility and will retain credit risk of the
international buyers. The loan facility will be disbursed on a periodic basis,
reimbursing Textron’s Finance segment for financings of eligible aircraft and
helicopters that have been exported.
Textron is a multi-industry company with a global network of aircraft, defense,
industrial and finance businesses. Cessna Aircraft Company currently employs
more than 11,000 workers at its manufacturing plants in Wichita and
Independence, Kan., and Columbus, Ga. Bell Helicopter Textron is headquartered
in Fort Worth, Texas, and also has a manufacturing facility in Amarillo, Texas.
Bell Helicopter has approximately 8,100 U.S. employees.
TFC is a commercial finance company that provides financing for products
manufactured by its parent company, Textron Inc.
Hochberg also announced at EBACE in Geneva today that Ex-Im Bank has approved a
new credit process to facilitate and expedite the Bank's financing for
business-aircraft and helicopter exports from other U.S. manufacturers that do
not have a captive financing company. Under the new process, Ex-Im Bank will
work with qualified industry experts to perform due diligence and credit
analysis for these business-aircraft and helicopter transactions.
In FY 2011, Ex-Im Bank authorized more than $12.6 billion in financing to
support the export of U.S.-manufactured aircraft of all types, including
approximately $90 million for 10 business aircraft and helicopters exports to
four countries – Brazil, Mexico, Panama and Switzerland.
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