This transaction represents the inaugural serviced securitization for Merx Aviation Servicing Limited (the “Servicer”) who is an indirect wholly owned subsidiary of Merx Aviation Finance, LLC (“Merx” or the “Company”).
Proceeds from the sale of the Notes will be used to acquire or refinance 25 aircraft on lease to 16 lessees located in 11 countries with initial value of approximately $610.5 million. In addition, proceeds of the Notes will also be used to refinance the AABS Limited Asset Backed Secured Term Loan (“AABS”) aircraft ABS transaction, which closed in January 2013. Of the 25 aircraft in this portfolio, 19 were also securitized in the AABS portfolio. Merx owned the equity in the AABS transactions and is now taking over the servicing of those 19 aircraft.
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.
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)||$415,000,000|
|Series B Notes||BBB (sf)||$55,000,000|
|Series C Notes||BB (sf)||$36,500,000|
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 MAPS 2018-1 Limited Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
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