International Lease amends revolver covenant, pays down $800 million

By Angela McDaniels

Tacoma, Wash., Dec. 23 - International Lease Finance Corp. amended its $2.5 billion revolving credit facility due 2011 on Wednesday and repaid $800 million of loans outstanding under the credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The paydown was a condition to the effectiveness of the amendment.

The amendment revised the definition of fixed charge coverage ratio so that any impairment charges incurred in connection with the writedowns of aircraft to their fair value will not affect compliance with the ratio.

The company said that as of Sept. 30 it was close to the minimum fixed charge coverage ratio of 1.1 required under the credit agreement and that its net loss for the first nine months of 2010 was primarily due to impairment and lease-related charges.

International Lease Finance is a Los Angeles-based aircraft lessor. It is a subsidiary of American International Group, Inc.

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