Falcon Aerospace asset backed securitisation has been announced by Dubai Aerospace Enterprises, which is selling the e-note on a portfolio of 21 aircraft, leased to 13 airlines located in 12 countries with an initial total value of approximately $496.1 million.
DAE will act as the servicer for the transaction.
The ABS deal follows a similar loan structure to the Apollo AASET 2016-2, which features a single waterfall aimed at improving the efficiency of the transaction.
The $410million is offered in three classes of loans, all maturing in 2042. The $315 million A loans, with an initial loan-to-value ratio of 63.5%, are rated A by Kroll Bond Ratings and Standard and Poor’s. The $65 million B loan tranche is rated BBB by Kroll and S&P with an initial LTV of 76.6%, while the BB-rated $30 million C loan tranche has an LTV of 82.6%.
Goldman Sachs is the sole structuring agent on the deal. Credit Agricole-CIB is providing the liquidity facility, with Wells Fargo as the trustee and phoenix American Financial Services as the managing agent.
This deal will be the first aircraft ABS of 2017, with three more being prepped now. Seven ABS deals closed in 2016, and this year’s pipeline is predicted to at least match that. Aircraft ABS are certainly not easy or cheap deals to structure but investors are learning that they do pay and are becoming more attuned to this product and asset type.Date: January 26, 2017