El Al gets US$40 million Boeing loan for a 787's

The airliner had the option either to buy one, or lease two planes
 
El Al Israel Airlines Ltd. has taken a US$40 million loan from Boeing Company's financing arm, Boeing Capital Corporation, to finance the purchase of one Boeing 787 Dreamliner, or lease two 787s.
 
For the Boeing loan, El Al will put up as collateral a 777-200ER passenger jet it acquired in 2002. The eight-year loan will be taken in two parts - $30 million will be available in July 2012 and the rest in July 2014.
 
El Al said it would use the loan to help buy either one Boeing 787 Dreamliner, or to lease two 787s, in 2015 or 2016. El Al has already purchased four other new planes, which will enter its fleet between 2013 and 2015.
 
El Al said it needs the new planes to reduce the overall age of its fleet and to replace some of its wide body jets with narrower ones. The company noted that within the loan agreement, it will forego the right to convert the purchase of two new Boeing 737-900 ER jets to an option to acquire a 787.
 
El Al stated that the purchase of the two additional planes, due for delivery between October 2015 and February 2016, will add to the four Boeing 737-900 ER's planes due to enter service between October 2013 and March 2015. The estimated price of the purchase of six Boeing 737-900 ER's is $300-320 million.