AeroCentury amends credit agreement to allow for collateral sale

By Rebecca Melvin

New York, Dec. 3 – AeroCentury Corp. together with two of its subsidiaries, JetFleet Holding Corp. and JetFleet Management Corp., entered into a second amendment to its credit agreement and consent for sale of collateral with MUFG Union Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment is being made under the company’s third amended and restated credit agreement of Feb. 19, 2019.

The modification reduced the current maximum availability under the credit agreement to $93 million and reduced the maximum availability under an accordion feature to $108 million.

It also provided lenders’ consent to the company’s sale of an aircraft, SN 236, that is part of the collateral base securing the credit agreement obligations, to its lessee pursuant to the terms of the lease with such lessee; provided for the creation of a restricted bank account to hold the sales proceeds from the sale of aircraft and established conditions for requests to lender from the company for disbursements of funds from the restricted account; and provided for periodic cash flow budget reporting by the company to the lenders.

AeroCentury is an aircraft operating lessor and finance company based in Burlingame, Calif.

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