Aircraft lessor AerCap to tap its $6.6 billion in credit

AerCap Holdings NV, the world’s largest aircraft leasing firm, is planning to draw down all or part of the $6.6 billion of credit it has access to, according to people with knowledge of the matter, making it the latest company shoring up its finances as the coronavirus pandemic roils markets worldwide.

The company has held talks with lenders about its intentions and is seeking to shore up its capital position, said the people, who asked not to be identified because the matter is private. The $6.6 billion encompasses the total available to the Dublin-based company under undrawn credit lines and term loan facilities as of Dec. 31, according to filings.

Gillian Culhane, a representative for AerCap, declined to comment.

AerCap joins companies including Boeing Co., Hilton Worldwide Holdings Inc. and Wynn Resorts Ltd. in leaning harder on billions of dollars in credit facilities. Private equity titans Blackstone Group Inc. and Carlyle Group Inc. advised some of the businesses they control to consider similar measures to prevent potential shortfalls.

AerCap’s shares have fallen 56% in the past month, outpacing declines in the S&P 500 index. On Thursday, the stock fell 33%, the most in its history, to the lowest level since February 2016. The company is facing tumult as its airline customers cut their flight schedules amid a steep decline in travel as the coronavirus spreads.

The company has $43.7 billion in assets and is the largest owner of commercial aircraft in the world, according to its website and filings. It owned 1,035 aircraft as of Dec. 31 and had 349 on order. AerCap says it is the world’s largest lessor of Airbus SE’s A320 and Boeing Co.’s 787 planes, and the first lessor of Embraer SA’s E-Jets E2.