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.
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
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