Lending Query

A wealthy Emirati individual, with a penchant for luxury and business travel, approached Silver Oak Capital seeking assistance in acquiring a Gulfstream G650 private jet. They required a long-term financing solution at 80% loan to value (LTV).

Client Circumstances

The borrower, a prominent figure in the Emirates, possessed substantial wealth and a keen interest in luxury aviation. With a history of high-value investments and a strong financial standing, the borrower instilled confidence in potential lenders. They aimed to acquire the private jet swiftly and required immediate access to financing post-purchase.

Problems to Solve

Primary challenges in this case included addressing potential issues related to aircraft valuation, maintenance costs, and regulatory compliance. Additionally, ensuring the suitability of the aircraft for the borrower’s specific travel needs and preferences posed a unique challenge requiring specialized knowledge of the private aviation industry.

Solution Provided

We presented a customized financing solution from a European Private Bank, tailored to meet the client’s requirements:

  • Loan Amount: $40 million USD
  • Loan to Value: 80%
  • Interest Rate: 3.5% + Euribor
  • Term: 10 years
  • Repayment Structure: Amortization over 10 years (30% Balloon)
  • Lender Fee: 1.5%
  • $5m AUM