FOR IMMEDIATE RELEASE May 20, 2009
Linda Formella (202) 565-3200
|Cessna Aircraft Company employees work on the Citation CJ line at the company's manufacturing plant in Wichita, Kan. Ex-Im Bank has approved a $500 million direct-loan facility to assist Textron Inc. in financing exports from two of its companies, Cessna Aircraft Company and Bell Helicopter Textron.|
WASHINGTON, D.C.: The board of directors of the Export-Import Bank of the United States (Ex-Im Bank) today authorized a $500 million direct-loan facility to provide the funds to assist Textron Inc. in financing the exports of two of its companies, Cessna Aircraft Company and Bell Helicopter Textron.
The $500 million facility will enable Textron to continue to provide financing to international customers that take delivery of new Cessna aircraft and Bell commercial helicopters by December 2010. The repayment term of the Ex-Im Bank facility is 10 years.
Ex-Im Bank funding is needed to support exports of Cessna aircraft and Bell helicopters that until recently Textron Financial Corp. (TFC) had been able to finance with funds raised in the capital markets. The Ex-Im Bank facility will enable TFC to continue to finance these exports with competitive repayment terms and interest rates.
Ex-Im Bank's mission is to assist in financing U.S. exports to help companies create and maintain jobs in the United States, and that is exactly what this facility is designed to do. It will help Textron to continue exporting Cessna aircraft and Bell helicopters and support the jobs of thousands of U.S. workers at these companies, said Ex-Im Bank Transportation Vice President Robert Morin. This facility will enable Ex-Im Bank to leverage its resources and support a large volume of individual exports.
TFC will be the ultimate source of repayment for the Ex-Im Bank facility and will retain the credit risk of the international buyers. Ex-Im Bank will disburse under the facility on a periodic basis, reimbursing TFC for financings of eligible aircraft and helicopters that have been exported.
Morin added, The facility has been structured to provide TFC with the flexibility it wants, while at the same time, providing Ex-Im Bank with the protection we need.
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.
In fiscal year 2008, Ex-Im Bank authorized a total of $14.4 billion in financing to support an estimated $19.6 billion of U.S. exports worldwide. The Bank authorized more than $5.5 billion to support the export of new U.S.-manufactured, large commercial aircraft to airlines in 15 different countries. The Bank also authorized $123 million to support exports of U.S.-made small aircraft, helicopters, locomotives and other transportation-related equipment to various operators around the world.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps to create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans. For more information, visit www.exim.gov.