Kroll Bond Rating Agency Assigns Preliminary Ratings to Thunderbolt Aircraft Lease Limited

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (“the Notes”) issued by Thunderbolt Aircraft Lease Limited.

Proceeds from the sale of the Notes will be used to purchase a fleet of 19 aircraft that are initially leased to 17 airlines located in 13 countries with an initial total value of approximately $436.4 million.

This transaction represents the second term securitization of aircraft managed by Air Lease Corporation (ALC”or “the Company”). ALC was founded in 2010 by Steven F. Udvar Házy. As of December 31, 2016, ALC’s net book value of its fleet was approximately $12.0 billion, with 237 owned aircraft, and an additional 30 managed aircraft. The aircraft are on lease to 85 airlines across 51 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.

For complete details on the analysis, please see KBRA’s Presale Report, Thunderbolt Aircraft Lease Limited, which was published today at www.kbra.com.

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) $253,400,000
Series B Notes BBB (sf) $69,300,000
Series C Notes BB- (sf) $22,000,000

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: Thunderbolt Aircraft Lease Limited Representations and Warranties Disclosure.

Related Publications: (available at www.kbra.com)

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).

Contacts

Analytical:
Kroll Bond Rating Agency
Alan Greenblatt, 646-731-2496
Director
agreenblatt@kbra.com
or
Patrick McShane, 646-731-2376
Senior Director
pmcshane@kbra.com
or
Caitlin Colvin, 646-731-2465
Senior Director
ccolvin@kbra.com
or
Andrew Kabala, 646-731-2447
CFA, Director
akabala@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Analytical:
Kroll Bond Rating Agency
Alan Greenblatt, 646-731-2496
Director
agreenblatt@kbra.com
or
Patrick McShane, 646-731-2376
Senior Director
pmcshane@kbra.com
or
Caitlin Colvin, 646-731-2465
Senior Director
ccolvin@kbra.com
or
Andrew Kabala, 646-731-2447
CFA, Director
akabala@kbra.com
or
Follow us on Twitter!
@KrollBondRating