Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
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March 04, 2010
According to BusinessWeek, International Lease Finance Corp (ILFC), the aircraft leasing unit of AIG, is seeking a loan with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for unsecured, short-term loans.
ILFC’s new loan would be for $550 million, bringing their total bank debt obtained since AIG’s government bailout to $1.3 billion. Interest rate for the new term loan would be LIBOR plus 5% with a LIBOR floor of 2%, creating an effective minimum interest rate of 7%. In February, ILFC began marketing a $750 million term loan with an interest rate of LIBOR plus 4.75% with a LIBOR floor of 2%. Per an analyst quoted in the BusinessWeek article, ILFC intends to restructure its debt with the LIBOR-based loans in preparation for sale of the company.