PROVIDENCE – The U.S. Export-Import Bank last week announced a financing subsidiary of Textron Inc. fully paid off a $500 million loan with the federal government two years ahead of schedule.
The federal bank made the loan with Textron Financial Corp. in 2009. The company helps finance the exports of its parent company, based in Providence, which include aircrafts and helicopters.
The direct-loan facility carried a repayment term of 10 years. TFC paid it off in eight.
“This is an excellent example of how Ex-Im Bank can step in for the private sector to ensure that vital U.S. export sales go forward while ensuring that the taxpayers’ interests are fully protected,” said Charles J. Hall, acting chairman and president of Ex-Im Bank.
TFC, based in Wichita, Kansas, made the direct-loan facility with Ex-Im Bank at a time when it needed funds to maintain competitive repayment terms and interest rates on the exports of Textron.
The bank estimates the loan helped TFC finance the exports of about 150 Textron aircraft and it helped support thousands of U.S. workers.
“Not only did [the bank] financing support thousands of American jobs and enable some $700 million of Textron exports to go forward, but it also earned $15 million in fees and interest for the taxpayers,” Hall said. “This was a win for the exporter, a win for the U.S. economy and a win for the American people.”
Ex-Im Bank helps private companies finance exports using such tools as working-capital guarantees and export credit insurance.
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
