Diamond Head cuts portfolio and balance

Diamond Head cuts portfolio and balance

Diamond Head has shrunk the balance of its asset backed security (ABS) from $260,750,000 to $163,191,691, after it cut the portfolio backing the bond from 30 aircraft to 22.

The bond, Diamond Head Aviation 2015, was  closed on 30 July 2015, with Irish lessor AWAS acting as servicer. The security consists of two tranches.

The portfolio backing the bond is a mix of narrowbody and widebody jet aircraft that are on lease to 12 operators in 11 countries. This is down from its original customer base of 16 operators in 14 countries.

The final maturity date for both tranches remains 15 November 2029. The tranche ratings were affirmed as A and BBB by Kroll Bond Rating Agency this week.

Regarding the affirmed rating, Kroll said: “The ratings affirmation reflects the fact that the collateral performance is in line with KBRA’s base case scenario.”

Phoenix American Financial Services acted as managing agent for the security and Wells Fargo was the sole structuring agent and lead arranger for the transaction.

Issuer: Diamond Head Aviation 2015

Servicer: AWAS
Trances: Two
Affirmed Balance: $163,191,691
Tranche Ratings: A (Class A notes) and BBB (Class B Notes)
Assets: 22 aircraft

Managing agent: Phoenix American Financial Services
Indenture trustee: Wells Fargo bank
Liquidity facility provider: Royal Bank of Canada
Sole structuring agent and lead arranger: Wells Fargo bank

Alex Baldwin
By Alex Baldwin August 3, 2017 16:24