Aircraft leasing company bond issues 2017

Aircraft leasing company bond issues 2017

So far in 2017, aircraft operating lease companies have issued $4.85 billion in unsecured bonds and $825 million in asset backed securities. 

Six unsecured bonds have been issued with the most active book runners being: Citigroup (5), BNP Paribas (4), JP Morgan (4), Goldman Sachs (3) and RBC Capital Markets (3).


June 2017

Issuer: STLC (GTLK)
Type: Eurobond
Size: $500 million
Maturity: 31 May 2024
Coupon: 5.125%

May 2017

Borrower: Apollo Aviation Management
Issuers: AASET 2017-1
Date: 22 May 2017
Size: $612.2 million

Assets: 32 aircraft

Class A
Size: $479.45 million
Coupon: TBD
Initial LTV: 65%
Final maturity: May 2042
Rating: A (Kroll)

Class B
Size: $88.5 million
Coupon: TBD
Final maturity: May 2042
Rating: BBB (Kroll)
Initial LTV: 77%

Class C
Size: $44.2 million
Coupon: TBD
Final maturity: May 2042
Initial LTV: 83%

Servicer: Apollo Aviation Management
Global coordinator, lead bookrunner and structuring agent: Goldman Sachs
Liquidity facility provider: DVB Bank SE
Managing Agent: Phoenix American Financial Services

April 2017
Lessors: Air Lease Corporation (344.7 million)
Unsecured notes
Secured notes
Asset backed securities: $344.7 million

March 2017
Lessors: Aircastle ($500 million), Air Lease Corporation ($500 million), China Aircraft Leasing Company ($500 million)
Unsecured notes: $1.5 billion
Secured notes:
Asset backed securities:

February 2017
Lessors: Dubai Aerospace Enterprise ($410 million), Elix Aviation Capital ($411 million)
Unsecured notes:
Secured notes:
Asset backed securities: $821 million

January 2017
Lessors: AerCap ($600 million), Aviation Capital Group ($1 billion), Avolon ($1.75 billion)
Unsecured notes: $3.350 billion
Secured notes:
Asset backed securities:


TRANSACTIONS

Issuer: Thunderbolt Aircraft Leasing
Servicer: Air Lease Corporation
Date: 17  April 2017
Size: $344.7m
Interest: TBD
Final Maturity: May 2032
Tranches: three
Term: 15 years
Lead Bookrunners: Bank of America, Merril Lynch and Mizuho Securities.


Borrower: Aircastle
Issue date: 6 March 2017
Size: $500 million
Structure: Senior notes
Term: Seven years
Coupon: 4.125%
Issue price: 100%
Settlement: 20 March 2017
Joint books: Citigroup, BNP Paribas, Credit Agricole Securities, Deutsche Bank, Goldman, Sachs, JP Morgan, Mitsubishi UFJ Securities, RBC Capital Markets
Borrower type: Leasing company
Borrower country: US


Borrower: Air Lease Corporation
Date: 2 March 2017
Structure: Senior notes
Size: $500 million
Term: 10 years
Maturity: 1 April 2027
Coupon: 3.625%
Issue price: 98.241%
Settlement: 8 March 2017
Joint books: BNP Paribas, Citigroup, JP Morgan, RBC Capital Markets
Lead managers: Bank of America Merrill Lynch, BMO Capital Markets, Commonwealth Bank of Australia, Fifth Third Securities, Goldman Sachs, ICBC Standard Bank, Lloyds Securities, Loop Capital Markets, Mizuho Securities, MUFG, Santander, SunTrust Robinson Humphries, Wells Fargo Securities

Borrower type: Aircraft leasing company
Borrower country: US


Issuer: China Aircraft Leasing Group
Date: March 1, 2017
Size: $300 million
Type: Unsecured bond
Term: Five years
Coupon: 4.7%
Investors by type: Fund managers and insurance (40%), banks (35%), private bank (25%)
Investors by region: Asia (82%), Europe (18%)

Size: $200 million
Term: Seven years
Coupon: 5.5%
Investors by type: Fund managers and insurance companies (45%), banks (39%), private banks (16%)
Investors by region:Asia (78%), Europe (225)

Bookrunners: China Everbright Bank (Hong Kong); Citigroup; DBS Bank

Borrower type: Aircraft leasing company
Borrower country: China

Barry Mok, Deputy Chief Executive Officer and Chief Financial Officer of CALC: “With the expectation that the Fed will increase its rate, the 5-year bonds continue to bear a lower interest rate than in the past, which is a reflection of a stronger confidence in the Company’s credit. The issuance received overwhelming support from investors from various regions around the world on a diversified base, which demonstrates the market’s recognition of CALC’s leading position.”


Borrower: Falcon Aerospace Limited
Date: 14 February 2017
Servicer: Dubai Aerospace Enterprise
Portfolio Value: $496.1 million
Aircraft: 5 A319-100s, 5 A320-200, 3 B737-800s, 8 B737-800s

Series A
Size: $315 million
Rating: A (Kroll)
Interest rate: 4.581%
Loan to value: 63.5%
Final maturity: February, 2042

Series B
Size: $65 million
Rating: BBB (Kroll)
Coupon: 6.3%
Loan to value: 76.6%
Final maturity: February, 2042

Series C
Size: $30 million
Rating: BB (Kroll)
Coupon: 8.5%
Loan to value: 82.6%
Final maturity: February, 2042

Managing Agent: Phoenix American Financial Services
Trustee: Wells Fargo Bank
Liquidity Facility Provider: Credit Agricole Corporate and Investment Bank
Global Coordinator and Left Lead Arranger: Goldman Sachs
Structuring Agent: Goldman Sachs


Issuer: Prop 2017-1
Date: 9 February 2o17
Structure: Aircraft operating lease securitisation
Sponsor: Elix  Aviation Capital

Aircraft: 7 ATR 72-600, 6 Dash 8-400, 11 Dash 8-300, 3 ATR 42-300, 10 ATR 42-500, 4 Dash 8-100, 6 ATR 72-500, 16 Dash 8-200.

Series A
Size: $300 million
Rating: A (Kroll)
Interest rate: 5.3%
Loan to value: 55%
Legal final maturity: 15 March, 2042

Series B
Size: $57 million
Rating: BBB (Kroll)
Interest rate: 6.9%
Loan to value: 65.5%
Final maturity: 15 March, 2042

Series C
Size: $54 million
Rating: B (Kroll)
Interest rate: 9.55%
Loan to value: 75.4%
Final maturity: 15 March, 2042

Servicer: Elix  Aviation Capital
Liquidity facility provider: DVB Bank
Managing agent: Phoenix American Financial Services
Facility Agent, Operating Bank, Security Trustee and Trustee: Wells Fargo Bank

Borrower type: Aircraft lessor
Borrower country: Ireland


Issuer: AerCap
Date: 23 January 2017
Structure: Unsecured bonds
Size: $600 million
Term: Five years
Maturity: 2022
Coupon: 3.5%
Issuing vehicle: AerCap Ireland Capital Designated Activity, AerCap Global Aviation Trust
Joint books: Citigroup, Goldman Sachs, JP Morgan, Merrill Lynch
Borrower type: Aircraft leasing company
Borrower country: Ireland


Issuer: Aviation Capital Group 
Date: 20 January 2017
Structure: Unsecured senior notes
Size: $1 billion
Term: Five years:
Coupon: 2.875%
Issue price: 99.364%
Final maturity: 20 January 2022
Books: BNP Paribas, Citigroup, Goldman Sachs, RBC Capital Markets
Borrower type: Leasing company
Borrower country: US

Eric Blau, treasurer, Aviation Capital Group: “Today’s debt issuance represents a landmark transaction for ACG. This transaction was our largest unsecured offering to date, generated considerable interest among institutional investors and achieved highly competitive pricing.”


Issuer: Avolon
Date: 20 January 2017
Issuer vehicle: Park Aerospace Holdings
Settlement: 3 February 2017

Size: $1,750 million
Term: Five years
Due: 2022
Coupon: 5.25%

Size: $1,250 million
Term: Seven years
Due: 2024
Coupon: 5.5%

Books: Barclays, BNP Paribas, Credit Agricole CIB, JP Morgan, Morgan Stanley, UBS, SunTrust
Issuer type: Leasing company
Issuer country: Ireland


Source: Aircraft Investor research – using regulatory filings, ratings reports, press releases and other public information

Alasdair Whyte
By Alasdair Whyte March 9, 2017 12:39

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