By Daily Press staff
Santa Monica-based Tennenbaum Capital Partners, LLC has announced it has provided financing commitments of $90 million to Northwest Airlines, Inc. in a senior secured, first mortgage aircraft financing.
The financing, which was arranged by Tennenbaum Capital Partners, Vx Capital Partners, LLC and Northwest, is secured by four B747-200 aircraft. Two of the four aircraft are currently dedicated freighters in service to Northwest’s cargo operations, and two will be converted from passenger to freighter configuration during 2005.
With the completion of its financing to Northwest, Tennenbaum Capital Partners now has committed more than $175 million to aircraft financings involving two major domestic airline companies.
“We are pleased to have completed these investments,” said Tennenbaum Capital Partners founder and senior managing partner Michael E. Tennenbaum. “The dramatic transformation of the airline industry and the accompanying decline in aircraft values have created opportunities for our firm to provide value-added financing for the industry’s leading players.
“Our ability to craft complex individual aircraft-backed investments to meet the medium-to long-term fleet and financing needs of airline borrowers sets us apart from many other investment firms,” Tennenbaum added.
In the fourth quarter of 2003, Tennenbaum provided financing of $86 million for Delta Airlines, secured by nine B757-200 passenger aircraft in revenue service with Delta’s fleet.
Tennenbaum Capital Partners is a private investment firm managing more than $3.5 billion in assets through private funds. The firm’s investment strategy is based on a long-term, value approach, and it assists — both financially and operationally — transitional companies in such industries as technology, healthcare, energy, aero-space, business services, retail, and general manufacturing.
Originally published in the Santa Monica Daily Press print edition on February 17, 2005. Read the original PDF.