2016 Aviation bond issues

2016 Aviation bond issues

Recently closed and announced bond issues by airlines, aircraft leasing companies and other aviation companies.

Issuer: Castlelake Aircraft Securitization Trust 2016-1

Date: 1 August 2016
Size: $916 million
Assets: 52 aircraft and one engine

Class A
Size: $715 million
Coupon: 4.45%
Initial LTV: 64.02%
Rating: A (Kroll) /A (S&P)
Class B
Size: $130 million
Coupon: 6.15%
Initial LTV: 75.66%
Rating: BBB (Kroll) / BBB (S&P)

Class C
Size: $71 million
Coupon: 8%
Initial LTV: 82.02%
Rating: BB (Kroll) / BB (S&P)

Servicer: Castlelake
Joint structuring agents: Goldman Sachs, Deutsche Bank
Global coordinator: Citigroup
Co-manager: DVB
Liquidity facility provider: DVB
Managing Agent: Phoenix American Financial Services
Trustee and Facility Agent: Wells Fargo Bank

Borrower type: Aircraft leasing company
Borrower country: US


IssuerHarbour Aircraft Investments Limited Series 2016
Servicer: Aergen Aviation Finance Limited
Date: 22 June 2016
Size: $324.7 million
Structure: Securitization
Aircraft: 19 narrowbody aircraft

Series A
Size: $246.7 million
Rating: A (S&P)/ A (Kroll)
Weighted average life: 3.7 years
Coupon: 4.703%
Issue price: 99.99726
Yield: 4.75%
Initial loan-to-value: 63.73%

Series B
Size
: $47 million
Rating: BBB (S&P)/BBB (Kroll)
Weighted average life: 4 years
Coupon: 6.413%
Issue price: 99.99726
Yield: 6.5%
Initial loan-to-value: 75.87%

Series C
Size
: $31 million
Rating: B (S&P) / B (Kroll)

Weighted average life:
Coupon: 10.278%
Issue price: 99.99854
Yield: 10.5%
Initial loan-to-value: 83.88%

Borrower: Aircraft leasing
Borrower country: Ireland


Borrower: EA Partners II (Etihad Airways, Etihad Airport Services, airberlin, Air Serbia, Air Seychelles, Alitalia)
Date: 23 May 2016
Size: $500 million
Structure: Bond
Rating: A (Fitch)
Joint bookrunners: ADS Securities, Anoa Capital, Goldman Sachs, Integrated Capital

Borrower type: Airline
Borrower country: UAE


Borrower: Boeing
Date: 16 May 2016
Size: $1.2 billion
Type: Unsecured notes

Seven year notes
Size: $400 million
Settlement date: 18 May 2016
Maturity date: 15 June 2023
Coupon: 1.875%
Issue price: 98.521%
Re-offer yield: 2.101%
Treasury benchmark: 1.625% Treasury due 30 April 2023
Spread to Treasury: +55bps

Joint bookrunners: Merrill Lynch, Barclays Capital, Wells Fargo, Credit Agricole CIB, Santander, US Bancorp
Senior co-managers: BBVA, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Lloyds, Mitsubishi UFJ, Mizuho, Morgan Stanley, RBC, SG, SMBC Nikko
Co-managers: ANZ, BNY Mellon, Commerz, Standard Chartered
Junior co-managers: Blaylock Beal Van, CastleOak Securities, CA VU Securities, Guzman, Lebenthal, Loop Capital Markets, Siebert Brandford Shank, The Williams Capital Group

10 year notes
Size: $400 million
Settlement date: 18 May 2016
Maturity date: 15 June 2026
Coupon: 2.250%
Issue price: 98.858%
Offer yield: 2.378%
Treasury benchmark: 1.625% Treasury due 15 May 2026
Spread to Treasury: +62.5bps
Joint bookrunners: Merrill Lynch, Barclays Capital, Wells Fargo, Credit Agricole CIB, Santander, US Bancorp
Senior co-managers: BBVA, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Lloyds, Mitsubishi UFJ, Mizuho, Morgan Stanley, RBC, SG, SMBC Nikko
Co-managers: ANZ, BNY Mellon, Commerz, Standard Chartered
Junior co-managers: Apto Partners, Divine Capital Markets, Lebenthal & Co, Loop Capital Markets, Samuel A Ramirez & Company, Telsey Advisory Group, The Williams Capital Group

30 year notes
Size: $400 million
Settlement date: 18 May 2016
Maturity date: 15 June 2046
Coupon: 3.375%
Issue price: 96.725%
Offer yield: 3.553%
Treasury benchmark: 2.5% Treasury due 15 February 2046
Spread to Treasury: +95bps
Joint bookrunners: Merrill Lynch, Barclays Capital, Wells Fargo, Credit Agricole CIB, Santander, US Bancorp
Senior co-managers: BBVA, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan, Lloyds, Mitsubishi UFJ, Mizuho, Morgan Stanley, RBC, SG, SMBC Nikko
Co-managers: ANZ, BNY Mellon, Commerz, Standard Chartered
Junior co-managers: Academy Securities, Drexel Hamilton, Lebenthal & Co, Loop Capital Markets, Mischler Financial Group, The Williams Capital Group

Borrower type: OEM
Borrower country: USA


Borrower: NAS 2016-1 (Norwegian Air Shuttle)
Date: 9 May 2016
Size: $349 million
Structure: EETC (Reg 144 9a/Reg S)
Assets: 10 Boeing 737-800 (March 2016-September 2016 delivery)

A Tranche

Size: $274.3 million
Rating: Baa3 (Moody’s)/A (Fitch)
Term: 12 years
Issue price: 100%
Coupon: 4.875%
Settlement date: 18 May 2016
Expected maturity: 10 May 2028
Legal final maturity: 10 November 2029
Average life: 9 years
Initial and maximum LTV: 55.%

B Tranche
Size
: $74.8 million
Rating
: Baa3 (Moody’s)/BB (Fitch)
Term
: 8 years
Issue price: 97.883%
Coupon: 7.5%
Settlement date: 18 May 2016
Expected maturity: 10 November 2028
Legal final maturity: 10 May 2025
Average life
: 5.5 years
Initial and maximum LTV
: 73.3%

Bookrunner: Morgan Stanley
Liquidity facility provider: Natixis

Borrower type: Airline
Borrower country: Ireland


Borrower: American Airlines 2016-2
Date: May 2, 2016
Size: $828.644 million
Structure: EETC
Assets: 22 aircraft (11 Airbus A321s, 7 B737-700s, two Boeing 777-300ERs, two Boeing 787-8s)
Interest paid: 15 June and 15 December 15

Class AA
Size: $567 million
Rating: Aa3 (Moody’s)
Coupon: 3.2%
Final expected distribution: 15 June 2028
Issue price: 100%
Initial loan to value: 38.6%
Initial average life: 9.1 years

Class A
Size: $261 million
Rating: A2 (Moody’s)
Coupon: 3.65%
Final expected distribution: 15 June 2028
Initial loan to value: 56.4%
Initial average life: 9.1 years

Joint structuring agents and lead bookrunners: Credit Suisse, Deutsche Bank
Joint active bookrunners: Citigroup, Goldman Sachs, Morgan Stanley
Joint bookrunners: Bank of America Merrill Lynch, Barclays, JP Morgan, BNP Paribas, Credit Agricole Securities
Co-manager: US Bancorp
Liquidity facility provider: KfW IPEX-Bank
Appraisers: AISI, BK, MBA


Issuer: China Aircraft Leasing Group Holdings
Date: 29 April 2016
Size: $300 million
Structure: Unsecured bonds
Coupon: 5.9%
Payments: Semi-annual
Term: Three years
Mature: 2019
Joint global coordinators, joint bookrunners and joint lead managers: China Everbright Bank, DBS Bank
Joint lead managers: BOCOM International Securities Limited, CEB International Capital Corporation

Borrower type: Aircraft leasing company
Country: China


Borrower: Air Lease Corporation
Date: 4 April 2016
Size: $600 million
Structure: Unsecured senior notes
Mature: 1 June 2021
Coupon: 3.375%
Issue price: 99.059
Yield to maturity: 3.576%
Spread to Treasury: +235 basis points
Expected close: 11 April 2016
Interest payment dates: 1 June and 1 December (long first coupon)

Joint bookrunners: JPMorgan Securities, Merrill Lynch, RBC Capital Markets, SunTrust Robinson Humphrey


BorrowerApollo Aviation Securitization Equity Trust 2016-1
Date: 31 March 2016
Value: $510 million
Structure: Securitization
Assets: 32 aircraft
Global Coordinator, Sole Structuring Agent and Bookrunner: Goldman Sachs
Liquidity Facility Provider: DVB Bank
Servicer: Apollo Aviation Management
Managing Agent: Phoenix American Financial Services
Trustee: Wells Fargo Bank

Class A
Size: $395 million
Final maturity: February 2036
Loan-to-value: 62.5%
Coupon: 4.875%
Issue: 98.57448%
Yield: 5.375%.
Rating: A (sf) – Kroll

Class B
Size: $80 million
Final maturity: February 2036
Loan-to-value: 75.1%
Coupon: 6.5%
Issue: 97.96571%
Yield: 7.250%.
Rating
: BBB (sf) – Kroll

Class C
Size: $35 million
Final maturity: February 2036
Loan-to-value: 80.7%
Coupon: 9.197%
Issue: 99.99891%
Yield: 9.375%.
Rating: BB(sf) – Kroll

Borrower type: Leasing company
Borrower country: US


BorrowerHong Kong Airlines
Date: 23 March 2016
Size: $120 million
Structure: Bond
Term: Three years
Coupon: 6.994%
Issue price: 99.75%
Bookrunners: Bank of China, Guotai Junan Securities, Hong Kong International, JP Morgan, Orient Securities International Holdings.
Legal advisers to arrangers: Baker & McKenzie
Legal advisers to borrower:  King & Wood Mallesons, Maples & Calder

Borrower: Airline
Borrower country: Hong Kong SAR (China)


Borrower: BOC Aviation
Date: 21 March 2016
Structure: Rule 144A/Regulation S unsecured bond
Size: $750 million
Term: 10 years
Rating: BBB+ (Standard & Poor’s), A- (Fitch)
Joint issuers: BOC International, Citigroup, Goldman Sachs, The HSBC, J.P. Morgan, Morgan Stanley, BNP Paribas, Wells Fargo Securities.

Borrower type: Aircraft leasing company
Borrower country: Singapore


Borrower: Aircastle
Date: 21 March 2016
Size: $400 million
Structure: Unsecured bond
Assets: Unsecured
Coupon: 5%
Term: Seven years
Matures: April 2023

Joint bookrunners: Deutsche Bank, BNP Paribas, Citigroup, Credit Agricole CIB, Goldman Sachs, JP Morgan, Mitsubishi UFJ, RBC Capital Markets

Borrower: Aircraft leasing company
Borrower country: US/Ireland

Full write up


BorrowerKhazanah Nasional Berhad (Malaysia Airlines)
Date: 24 February 2016
Size: $750 million
Structure: Sukuk
Coupon: US five-year Treasuries plus 178 basis points.
Term: Five years
Joint Global Coordinators: CIMB and DBS Bank
Joint bookrunners: CIMB, DBS Bank, Standard Chartered Bank
Sole Shariah adviser: CIMB Islamic

Full write-up


Borrower: China Eastern Airlines
Date: 23 February 2016
Size: $184.66 million
Structure: Ex-Im Bond
Assets: One Boeing 777-300ER, one Boeing 737-800

Term: 10 years
Sole bookrunner: HSBC
Guarantor: Export-Import Bank of the US
Legal advisers: Baker & McKenzie (airline)

Borrower: Airline
Borrower Country: China


Borrower: EasyJet
Date: 9 February 2016
Size: Eu500 million
Maturity: Seven years
Rating: Baa3 (Moody’s), BBB+ (Standard & Poor’s)
Coupon: 1.75%
Offer price: 99.85
Stabilising manager: Société Générale
Managers: Barclays Bank, Merrill Lynch, Société Générale

Borrower: Airline
Borrower country: UK

Full write-up


Borrower: American Airlines (American Airlines Series 2016-1)
Total size: $1.074 billion
Date: January 21, 2016
Structure: EETC
Assets: 11 Airbus A321-231s, six Boeing 737-823s, one Boeing 777-323ER, four 787-8s

Class AA: $584.374 million
Rating: Aa3 (Moody’s)
Average life: Nine years
Legal final maturity: 15 July, 2029
Maximum LTV: 39.5%
Coupon: 3.575%

Class A: $262.218 million
Average life: Nine years
Legal final maturity: 15 July, 2029
Rating: A2 (Moody’s)
Maximum LTV: 57.2%
Coupon: 4.1%

Class B: $227.758 million
Average life: 5.6 years
Legal final maturity: 15 July, 2025
Rating: Baa3 (Moody’s)
Maximum LTV: 72.6%
Coupon: 5.250%

Joint structuring agents and lead bookrunners: Goldman Sachs, Citigroup
Joint active bookrunners: Morgan Stanley, Credit Suisse and Deutsche Bank
Joint bookrunners: BofA Merrill Lynch, Barclays, JPMorgan, BNP Paribas and Credit Agricole Securities.
Co-manager: US Bancorp
Liquidity facility provider:  KfW IPEX-Bank

Borrower: Airline
Borrower country: US

Full write-up


Borrower: Hong Kong Airlines
Date: 13 January 2016
Size: $180 million
Structure: Bond
Term: Three years
Coupon: 6.9%
Issue price: 99.071%
Settlement date: 20 January 2019
Bookrunners: Bank of China, Guotai Junan Securities, Hong Kong International, JP Morgan, Orient Securities International Holdings.
Legal advisers to arrangers: Baker & McKenzie
Legal advisers to borrower:  King & Wood Mallesons, Maples & Calder

Borrower: Airline
Borrrower country: Hong Kong SAR (China)

 


Source: Aircraft Investor research

Please send any missing deals or details to: aw@aircraftinvestor.com

Alasdair Whyte
By Alasdair Whyte March 1, 2016 20:15