NewStar Financial in helicopter fleet leasing deal

Boston-based NewStar Financial and Lobo Leasing, a leading global helicopter leasing company, have teamed up to provide a comprehensive fleet financing solution to RLC, a privately-held helicopter services company operating in the Gulf of Mexico.

The deal combined a sale/leaseback transaction with Lobo involving nine Bell helicopters (Bell 407s and Bell 206L-4s) and a $12 million equipment loan, provided by NewStar, secured by 20 other helicopters in RLC’s fleet.

The proceeds of the transactions were used to refinance existing debt and provide additional working capital, enhancing RLC’s financial flexibility, while supporting management’s strategy to expand its operations in the region serving independent energy services providers.

Lobo’s CEO, William Wolf (pictured above), said, “Today’s announcement is the product of a coordinated effort by RLC, NewStar and Lobo to customize a financing for RLC, which brings flexibility and stability to RLC, as it executes its business plans going forward. All of us at Lobo are pleased to play a part in this partnership, which brought not just lease financing provided by Lobo, but also the critical term debt piece provided by NewStar.”

“We were pleased to team up with Lobo Leasing to provide a complete financing solution that not only strengthened the balance sheet, but also helped position the company and its experienced management team to execute their business strategy,” said Steve O’Leary, Head of NewStar’s Equipment Finance group.

RLC’s president and CEO, Dru Milke, said, “These transactions allowed RLC to complete the desired blend of owned and leased aircraft in our fleet, while continuing to strengthen our balance sheet. This will position our organization for our continued expansion.”