KBRA Assigns Preliminary Ratings to Business Jet Securities 2018-2, LLC, Secured Notes, Series 2018-2

NEW YORK--()--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of Business Jet Securities 2018-2, LLC, Secured Notes, Series 2018-2. The notes are newly issued asset-backed securities secured by payments due under the lease of, and loans secured by, business jet aircraft and the economic ownership of each business aircraft subject to an operating lease and terms of the fixed rate notes as of June 14, 2018.

As of March 31, 2018, the aggregate asset value is approximately $821.5 million. The portfolio is comprised of 76 assets to 68 obligors. The average asset value is approximately $10.8 million and the weighted average remaining term is approximately 76 months with further detail regarding contract terminations provided below. Approximately 76.5% of the portfolio is initially on operating leases, while 8.0% are loans and 15.5% are finance leases.

             
Notes     Rating     Initial Note Amount
Class A     A (sf)     $550,390,000
Class B     BBB (sf)     $82,140,000
Class C    

BB (sf)

    $41,070,000

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 here.

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

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analysts:
Cecil Smart, Jr., 646-731-2381
Managing Director
csmart@kbra.com
or
Caitlin Colvin, 646-731-2465
Senior Director
ccolvin@kbra.com
or
Anthony Nocera, 646-731-2350
Senior Managing Director
anocera@kbra.com
or
Usman Khan, 646-731-2488
Associate Director
ukhan@kbra.com

Contacts

Analysts:
Cecil Smart, Jr., 646-731-2381
Managing Director
csmart@kbra.com
or
Caitlin Colvin, 646-731-2465
Senior Director
ccolvin@kbra.com
or
Anthony Nocera, 646-731-2350
Senior Managing Director
anocera@kbra.com
or
Usman Khan, 646-731-2488
Associate Director
ukhan@kbra.com