Sky Leasing debuts first ABS

Sky Leasing debuts first ABS

Sky Aviation Leasing has launched its first asset backed security (ABS). The $780.8 million security – S-JETS 2017-1 – will be used to finance the purchase of 21 aircraft.

This is a large investment for Sky, with the 21 aircraft representing 55.3% of its current fleet.

The fixed rate notes are offered in three tranches, comprising $657.8 million, $81 million and $42 million offerings. The notes have been assigned preliminary ratings of A, BBB and BB by Kroll Bond Rating Agency (KBRA) and all tranches will mature in August 2024.

The proceeds of the notes will be used to purchase a portfolio worth approximately $991.7 million. Out of the 21 aircraft, 18 are narrowbody, valued at 68.1% of the total portfolio, and three are widebody, valued at 30.9%.

The portfolio includes eight different aircraft types, with the majority of the value being Boeing 737-800s, A320-200s and A321-200s.

Phoenix American Financial Services is managing the transaction, Wells Fargo is acting as the trustee, and Credit Agricole is providing liquidity. Deutsche Bank is the structuring agent and lead bookrunner.


Issuer: S-JETS 2017-1
Servicer: Sky Aviation Leasing
Amount: $780.8 million
Type: ABS
Tranches: Three

Tranche A:
Amount: $657.8 million
Maturity: August 2024
Initial LTV: 66.3%
Preliminary Rating: A (KBRA)

Tranche B:
Amount: $81 million
Maturity: August 2024
Initial LTV: 74.5%
Preliminary Rating: BBB (KBRA)

Tranche C:
Amount: $42 million
Maturity: August 2024
Initial LTV: 78.7%
Preliminary Rating: BB (KBRA)

Managing Agent: Phoenix American Financial Services
Trustee: Wells Fargo
Liquidity Facility Provider: Cerdite Agricole
Sole Structuring and Lead Bookrunner: Deutsche Bank Securities

Alex Baldwin
By Alex Baldwin August 7, 2017 17:40