ALTEA founding partner, Robin Dunlop, believes that Bombardier’s recent $1bn refinancing project is a sign of things to come as the industry deals with the impact of Covid-19. ALTEA consultancy services helped a group of US-based private financiers – including HPS Investment Partners, Apollo Capital Management and Ares Management – close a three-year, $1bn secured-term loan facility for Bombardier it revealed last week (September 23rd).
Dunlop told Corporate Jet Investor: “We think in such uncertain times there could be more activity to come in terms of alternative financing and private investors. The market place holds some distressed organisations, they need alternative sources of cash and restructure. We can support those that are looking in on business aviation with a view to long-term investment.”
Fellow founding partner Andrew Butler said the Ares-Bombardier refinance is just one of a number of asset restructuring projects that ALTEA is working on “behind the scenes”.
Dunlop revealed to Corporate Jet Investor ALTEA is currently aiding a start-up OEM develop a new aircraft: “We can’t reveal too much but yes, we are supporting the activity with a start-up OEM who are developing a regional aircraft. It will support the move towards hybridisation of alternative propulsion fuel.”
Back with the Bombardier loan, Dunlop pointed to some unique challenges in working out the project. “There were challenges, so – yes, in the sense that there was very little transaction activity going on. We therefore needed to investigate previous downturns in the industry and look at the effects on asset values. We made assumptions that enabled our customer to move forward with confidence.”
Meanwhile, ALTEA has appointed Angus von Schoenberg as a new partner. Recognised as a regional aviation expert, von Schoenberg will work with ALTEA clients as well as continuing as industry officer with regional aircraft lessor TrueNoord.
Jean Sémiramoth, ALTEA co-founder, said, “More than ever, COVID-19 is forcing the industry to focus on finance, so it is critical that you have the knowledge, but also experience to navigate increasingly complex challenges. Bringing Angus onboard simplifies and substantiates our offer to the market and enables ALTEA to expand its aviation finance credentials significantly.”
