Herbert Smith Freehills has advised longstanding client Virgin Atlantic on a landmark £220 million secured bond financing which uses the airline’s take-off and landing slot portfolio at London Heathrow as security for the debt. This is the first ever transaction to be successfully completed for this asset class in Europe.

The Herbert Smith Freehills team worked closely with the in-house team at Virgin Atlantic and was led by structured finance partner Michael Poulton and competition/aviation regulatory partner Kim Dietzel, with support from finance partner John Nestel, corporate partners Robert Moore and Gareth Roberts and asset financing partners Amanda Wales and John Angus.

Michael said: "It has been incredibly exciting to work with Virgin Atlantic on this innovative financing transaction. It is the first time in history that an airline has successfully accessed the value of its London Heathrow slot portfolio in this way and opens up a new financing technique for the airline industry."

Kim added: "Innovation is core to our client's business and is something we strive to deliver. We are very pleased to have helped Virgin Atlantic achieve another milestone for their business."

Herbert Smith Freehills is a longstanding legal adviser to the Virgin Group globally across its successful businesses in sectors ranging from travel, leisure, holidays, mobile telephony, financial services and health & wellness. The firm advised Virgin Atlantic/Virgin Group on the acquisition of a 49% stake in Virgin Atlantic Airways by Delta Air Lines and the creation of a joint venture between Virgin Atlantic Airways and Delta as well as ongoing advice on the implementation of joint venture operations.