The new HALO facility is intended to finance a portfolio of General Electric CF34-8E engines and represents the inaugural transaction executed under HALO’s first fund, HALO One.
HALO AirFinance, a joint venture between GA Telesis and Tokyo Century Corporation, has closed a credit facility for US regional airline Republic Airways. The facility is intended to finance a portfolio of General Electric CF34-8E engines and represents the inaugural transaction executed under HALO’s first fund, HALO One. The partnership with InterVest Capital Partners was launched in March 2023.
HALO AirFinance was established by GA Telesis and Tokyo Century Corporation as a bespoke lending platform. The joint venture aims to provide secured debt solutions for airlines, lessors, and investors across a broad spectrum of aircraft and engine types. HALO benefits from the combination of GAT’s and TC’s respective structuring and financing expertise and asset and technical capabilities.
“Republic Airways is a market leader in the regional airline sector, and we are thrilled to announce them as our launch customer,” said Marc Cho, Co-Head and Managing Director, HALO. “This is the first of several financings in our pipeline, and we look forward to announcing many more transactions in the coming weeks and months,” he further added.
The joint venture represents a further move into the aviation finance sector by GA Telesis, which acquired a significant portion of the Boeing 747-400 passenger-to-freighter conversion market in March. GA Telesis’ plans for aircraft maintenance, repair, and overhaul (MRO) and engine overhaul, repair, and testing (ORT) expansion continue to be disrupted by the ongoing COVID-19 pandemic.
Joe Allman, CFO, Republic Airways said, “HALO demonstrated a high level of underwriting expertise to deliver a compelling financing package for our engine assets. Their clear understanding of the asset class and insights into the nuances of our engine operations made structuring the transaction seamless from the onset.”
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Meanwhile, the Republic Airways deal marks the latest move by the airline to shore up its balance sheet. Republic Airways’ parent company, Republic Airways Holdings, emerged from Chapter 11 bankruptcy protection in 2017. The airline operates a fleet of Embraer E-Jets and Bombardier Q400 turboprops on behalf of American Airlines, Delta Air Lines, and United Airlines.
