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," says 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.
"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," says Morin.
For more information visit www.exim.gov.