As per the report, the loan has been raised in two lots through separate agreements with the bank. Under one agreement, Jet Airways received a credit facility of Rs1,050cr, including a term loan in dollar worth Rs350cr (at a notional rate of Rs67/$) and a non-fund based facility of Rs700cr. The second agreement, a credit facility of Rs1,000cr, includes a term loan of Rs750cr and a non-fund based facility of Rs250cr.
Further, both the term loans have a five-year repayment tenure, although their interest rates vary. The Rs750cr loan has been sanctioned at a rate of 12-month Libor plus 5%, with a yearly reset. The rate for the Rs300cr term loan is 6-month Libor plus 3.5%, with a half-yearly reset. The loan agreement was signed on 14 January, the Mint report said. Jet Airways has an option to sell down as much as Rs250cr of the term loan to other investors, the report added.
Jet Airways will use the credit facility for its working capital needs, the media report said.