Proceeds from the sale of the Notes will be used to acquire 41 aircraft that are initially leased to 30 lessees located in 19 countries with an initial total value of approximately $962.4 million.
This transaction represents the second serviced securitization for Avolon Aerospace Leasing Limited (“AALL” or the “Company”) who is an indirect wholly owned subsidiary of Avolon Holdings Limited. AALL will act as servicer for the transaction. The Company was founded in May 2010 as an aircraft leasing company focused on acquiring, managing and trading commercial aircraft on lease to passenger airlines worldwide. As of December 31, 2017, the Company has an owned and committed fleet valuation of $46.5 billion with 153 customers in 64 countries and is the third largest aircraft lessor globally.
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 Global Aviation ABS Methodology published on November 28, 2017.
For complete details on the analysis, please see KBRA’s pre-sale report, Sapphire Aviation Finance I Limited Pre-Sale Report, 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||Preliminary Rating||Initial Note Amount|
|Series A Notes||A (sf)||$633,000,000|
|Series B Notes||BBB (sf)||$97,000,000|
|Series C Notes||BB (sf)||$38,380,000|
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 available Sapphire Aviation Finance I Limited Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
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