FOR IMMEDIATE RELEASE May 13, 2012
Phil Cogan or Linda Formella, (202) 565-3200
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.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.