Spectre refinances 737 NG freighters in what may be a trend of freighter financing

US-based Spectre Cargo Solutions, through its Irish affiliate NGF Genesis Limited, closed its first round of a long-term senior debt facility led by Erste Bank, Spectre announced yesterday. The debt facility will be used to refinance seven 737-700 and -800 converted freighters under the management of NGF Genesis and on lease to multiple operators.

Spectre said the debt facility will be the first institutional financing of its freighter portfolio and represents the first tranche of aircraft supporting its broader passenger-to-freighter platform. Although Spectre did not specify which aircraft will be refinanced, the company delivered the first of four 737 NG freighter-converted aircraft to India-based SpiceXpress last September. Sources also told Cargo Facts that Spectre will deliver the first 737-800BCF, which received certification from the Civil Aviation Authority of China late last year, on-lease to China Postal Airlines.

The news from Spectre is the latest in a series of freighter financing agreements recently covered by Cargo Facts. Last week, US-based lessor Aviation Capital Group said it would structure, arrange, and guarantee a senior loan covering a portion of the purchase price of a 747-8F scheduled for February delivery to Volga-Dnepr Group affiliate AirBridgeCargo Airlines. As the lessor noted at the time, the 747-8F financing is the first made under ACG’s Aircraft Financing Solutions program.

Prior to the ABC announcement, in November 2018, on behalf of Vx Capital Partners, a trust secured $189 million in asset-backed securities (ABS), backed by thirty-five narrowbody freighters as collateral. Notably, the ABS was the first to be made up entirely of narrowbody freighters. With this new announcement from Spectre, there seems to be an increasing willingness among banks and other lenders to provide financing for freighter aircraft and to view them as assets worthy of securing large amounts of capital.

Those interested in learning more about trends in air freight are invited to join us Cargo Facts EMEA, to be held 4-6 February at The Westin Grand Frankfurt, where a panel discussion will be dedicated to the topic. To register or for more information, visit www.cargofactsemea.com.