Proceeds from the sale of the Notes will be used to purchase a fleet of 20 aircraft that are initially leased to 16 airlines located in 15 countries with an initial total value of approximately $928.0 million.
GE Capital Aviation Services Limited will act as the servicer for the transaction (“GECAS”, the “Company” or the “Servicer”). GECAS is the world’s largest aviation services provider. As of December 31, 2015, the Company had assets valued at over $46 billion. GECAS is a subsidiary of GE Capital and headquartered in Shannon, Ireland, with 25 offices, serving over 270 customers and 1,700 aircraft in 80 countries.
The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.
KBRA analyzed the transaction using the Aviation ABS Methodology published on October 26, 2016.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
|Notes||Rating||Initial Principal Amount|
|Series A Notes||A(sf)||$603,000,000|
|Series B Notes||BBB(sf)||$106,000,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled ABS: Labrador Aviation Finance Limited and Labrador Aviation Finance USA LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
Follow us on Twitter!
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).