UPS Capital Loan Supports Export of U.S. Equipment to Mexican Airports

Discussion in 'UPS Pressroom News' started by cheryl, Dec 16, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Capital Loan Supports Export of U.S. Equipment to Mexican Airports

    UPS Capital®, the financial services arm of UPS (NYSE: UPS), today announced that its subsidiary UPS Capital Business Credit®* has arranged a nearly US$23 million loan for the installation of a baggage handling system with high-tech equipment from two U.S. companies by Grupo Aeroportuario del Centro Norte (OMA), which operates and manages 13 airports in Mexico and the Hotel of Mexico City International Airport's Terminal 2.

    The UPS Capital Business Credit loan is backed by the Export-Import Bank of the United States' Transportation Security Exports Program (T-SEP). T-SEP is designed to incentivize the use of U.S.-made products by structuring extended terms for financing.

    OMA (NASDAQ: OMAB) is using the loan proceeds to purchase equipment manufactured by two U.S. companies, Reveal Imaging Technologies and L-3 Security & Detection Systems, and will install the equipment at seven Mexican airports, including Monterrey, Zihuatanejo, Acapulco, Ciudad Juarez, Culiacan, Chihuahua and Mazatlan. The systems are expected to be installed in 2011. For more than 10 years, UPS Capital Business Credit has maintained a representative office in Mexico, which helped to arrange this loan.

    "This public-private partnership between the Ex-Im Bank and UPS Capital bolsters the volume of U.S. exports, not just to Mexico but to emerging markets around the world, and is a powerful catalyst for driving the sales of U.S.-made goods," said Bob Bernabucci, president of UPS Capital. "And as a key player in global trade, growth in all exports contributes to UPS's business of serving the logistics needs of our customers."

    "By working with UPS Capital to provide enhanced financing terms to OMA under our Transportation Security Equipment Program, we can support U.S. exports that otherwise might not go forward, help maintain American jobs and help Mexico strengthen the security of its airports and the safety of all who use them," added Ex-Im Bank Chairman and President Fred P. Hochberg.

    "OMA is committed to security in our airports. The baggage handling system with high tech equipment will place us at the level of the best airports in the world," said Jose Luis Guerrero Cortes, OMA's chief financial officer. "The project for equipping all 13 airports requires a total investment of approximately Ps. 500 million, part of which will be financed with debt. Contracting the long-term US$23 million loan from UPS Capital Business Credit is an important step forward in carrying out this major project."

    In addition to enabling OMA to upgrade equipment at the airports it operates, the loan also helps spur sales for U.S. exporters.

    "The flexible financing provided by UPS Capital and the support of the U.S. Export-Import Bank are valuable tools to L-3 as it continues to grow in the important and dynamic Latin American region," said Thomas M. Ripp, president of L-3 Security & Detection Systems.

    UPS Capital, the financial services arm of UPS, delivers financial products and services that are designed to improve the flow of funds and minimize risks in global trade. UPS Capital's offerings include global trade finance, trade protection services, credit cards and related services, and payment-acceleration services. UPS Capital's subsidiary, UPS Capital Business Credit, delivers financing solutions that include U.S. Small Business Administration loans and loans backed by the Export-Import Bank of the United States. UPS Capital has offices throughout the United States, as well as operations in several other countries. For more information, visit upscapital.com.