Bolt from the Blue – Thunderbolt enters the market

Eleanor Steed
By Eleanor Steed April 18, 2017 12:04

Bolt from the Blue – Thunderbolt enters the market

Air Lease Corporation has launched its second aviation asset backed securitisation transaction, named Thunderbolt Aircraft Lease Limited 2017-1.

The $344.7million deal is arranged in three tranches: $253.4 million A notes with an initial LTV of 58.1% and rated A by Kroll Bond Rating Agency (KBRA); $69.3 million B notes, 73.9% initial LTV ratted BBB by KBRA; and $22 million C notes, 79% initial LTV and rated BB- by KBRA.

The notes are secured on a fleet of 19 aircraft on lease to 17 airlines located in 13 countries. The initial weighted average aircraft age of the portfolio is approximately 12.5 years with a remaining lease term of approximately 3.4 years as of February 28, 2017. The portfolio has an initial value of approximately $436.4 million, based on the average of the maintenance-adjusted base values provided by three appraisers, which already includes an adjustment for expected maintenance conditions as of September 30, 2016. The Portfolio has an aggregate maintenance-adjusted current market value of approximately $422.8 million.

As of December 31, 2016, the 19 aircraft included in the portfolio represent approximately 7.1% (by number of aircraft) of ALC’s owned and managed fleet. ALC will remain as the servicer of the fleet.

Bank of America Merrill Lynch and Mizuho Securities are joint lead structuring agents and joint lead bookrunners. Citi is provider the liquidity facility, Deutsche Bank is the trustee and Phoenix American Financial Services is the managing agent.

ALC is holding roadshows this week and the deal is expected to close later next week.

Eleanor Steed
By Eleanor Steed April 18, 2017 12:04