Aviation financier Stellwagen could borrow up to €420m

Aircraft financier Stellwagen could borrow up to $500 million (€420m) from a group of banks to fund future growth.

The company confirmed on Thursday that a group of banks led by Morgan Stanley Asset Funding had agreed to provide Irish-based Stellwagen Investment Company with a $250 million credit facility.

Stellwagen said the five-year facility would provide it with capital to grow the assets that it has under its management.

The deal includes a feature allowing the company to increase the loan to $500 million in the future. It is expected that Stellwagen will ultimately draw down this amount.

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Stellwagen Investment Company is a fund managed by Stellwagen Capital. The group established it to raise cash to provide finance to airlines to buy aircraft.

Stellwagen chief executive Douglas Brennan said the deal was a "significant sign of support" from the banks.

The group is headquartered in Dublin. Its backers include banks, insurers, pension funds and other investors.