(Bloomberg) -- Bohai Leasing Co. signed a $1 billion private loan agreement with RRJ Capital, according to a person familiar with the matter, part of the group’s efforts to refinance about $2 billion debt due in September.
Private equity firm RRJ inked the deal on Saturday to provide the firm with financing via a two-year tenor and the ability to extend for one year, said the person who asked not to be named discussing private information. Loan proceeds will refinance borrowings issued by Bohai Leasing’s subsidiary Global Aircraft Leasing Co., the person added.
RRJ declined to comment. Bohai Leasing didn’t immediately respond to a request for comment outside of normal business hours.
The private loan — half of the $2 billion Bloomberg News had previously reported — came as Global Aircraft Leasing raised $1.1 billion in the junk bond market.
RRJ’s loan is backed by Bohai Leasing’s stake in Seaco, one of the world’s largest lessors of containers used to transport goods around the globe by ship.
Global Aircraft Leasing has some $2 billion debt that will mature in September, according to data compiled by Bloomberg. The RRJ loan and the funds it raised via the bond market will go toward paying the borrowings.
Bohai Leasing has been grappling with liquidity pressures in recent years. The aircraft and container leasing firm failed to repay some 2.3 billion yuan ($321 million) of onshore debt last year, according to its latest annual report in April. Still, the company said its offshore subsidiaries had decent cash flows and access to capital.
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