Aergo Capital, PK AirFinance and KDB provide four 737’s for Indonesian Airlines

Aergo Capital has announced PK AirFinance and the Korea Development Bank (“KDB”) as debt partners on four B737-900ER aircraft subject to leases with to Sriwijaya Air (two aircraft) and Thai Lion Air (two aircraft).

Financing on two 2015 vintage B737-900ER aircraft on lease to Sriwijaya Air (MSN 41712 & 41843) closed on 23rd of December 2016.  Together with KDB, financing of one 2016 vintage B737-900ER aircraft on lease to Thai Lion (MSN 38312) closed on 5th January 2017.  The final aircraft in the transaction is scheduled to close upon delivery of the aircraft to Thai Lion in Q1 2017.

Fred Browne, Chief Executive Office of Aergo Capital, commented, “We are delighted to partner with PK AirFinance and KDB on this transaction as we continue to support the expansion of Sriwijaya Air and Thai Lion Air.”

Niall Cronin, VP Marketing for PK AirFinance, remarked, “Aergo are a long term and admired partner for PK AirFinance. We are excited to have the opportunity to reaffirm this relationship.”

“KDB is pleased to be a co-arranger of Thai Lion transaction and is looking forward to having another successful closing for the final aircraft scheduled for later in Q1 2017,” said a KDB spokesperson.

Smith, Gambrell & Russell (former aviation team at Blake Morgan) acted as lead transaction counsel for Aergo Capital and KPMG acted as tax and accounting adviser. Clifford Chance acted as lead counsel for the Lenders.