Three lessor bond issuances and Stellwagen announces first loan for CALC

Eleanor Steed
By Eleanor Steed July 19, 2017 15:00

Three lessor bond issuances and Stellwagen announces first loan for CALC

Aircraft lessors are tapping into the capital markets this quarter, with AerCap, NAC and one out with new issuances (see European Lessor News below) and another large lessor poised to announce a $500 million issuance later today.

Meanwhile, Stellwagen Capital has given its first loan from its recently launched Senior Loan investment vehicle (Stelloan Investment Company I DAC). The 10-year loan to CALC is secured against a new Airbus A321 valued at $116 million, at current list prices. The loan has a balloon structure, which Stellwagen says makes it a very attractive financing option for leasing companies and airlines as it minimises cash outflows during the tenor of the loan.

“This is a game changer for the Group as we have now successfully expanded our operation and issued our first loan to CALC,” says Douglas Brennan, CEO of Stellwagen Group. “We see substantial opportunities to further develop this business as the total aircraft financing market expands to in excess of $200 billion in 2017. The effective closure of the European and U.S. Export Credits Agencies, along with the retrenchment of the commercial aviation banks post Lehman Brothers, has created a real opportunity to grow our business by delivering new innovative financing structures to both airlines and leasing companies.

Howard Millar CEO of Stellwagen Capital and COO of Stellwagen Group said: “We have received great interest from around the world for our new innovative loan solutions and we are delighted to conclude this important first loan transaction with CALC, an internationally recognised lessor. A second Airbus A321, with a similar list price will be financed by us for CALC in late September. This new senior loan product delivers innovative and bespoke financing to airlines and lessors, secured against high quality and liquid aircraft collateral, like the Airbus A321. We have a pipeline of similar opportunities, which we will execute over the coming months. This loan, in addition to the recent acquisition of ECN Capital’s commercial and aviation advisory and asset management business (“ECN”), based in Stamford Connecticut, will bring Stellwagen Capital’s total assets under management (“AUM”) to almost $1.6 billion. By the end of 2017, we expect to have in excess of $3 billion of AUM”.

Christian McCormick, Managing Director, Finance of CALC said: “We are very proud to establish the partnership with Stellwagen Capital, a worldclass and new financier offering innovative solutions, and being part of the initial investment of its senior secured aircraft financing company. The transaction again highlights that CALC’s fundamental business strength is recognised among international investors and financiers. Looking forward, CALC will continue to explore a variety of financing channels in the global capital markets to ensure flexibility for its sustainable development and business expansion plans globally.”

Eleanor Steed
By Eleanor Steed July 19, 2017 15:00