ALC in the market with Thunderbolt II featuring an innovative e note structure

Eleanor Steed
By Eleanor Steed July 9, 2018 10:03

ALC in the market with Thunderbolt II featuring an innovative e note structure

Air Lease Corporation (ALC) is currently in the market with a follow up to its successful Thunderbolt asset backed securitisation (ABS) transaction, which features what is being described as incorporating an innovative equity structure. 

On the debt side, Thunderbolt II (TBOLT 2018) issues $450 million of notes in two tranches – $375 million A notes, rated A with an initial LTV of 65.1%, and $75 million B notes, rated BBB with an initial LTV of 78.2%. The Series A Notes and Series B Notes both amortize on a 14-year straight-line schedule. The notes are secured on a portfolio of 18 aircraft, with a weighted average aircraft age of eight years and a weighted average remaining lease term of approximately 4.7 years. The portfolio consists of 17 narrowbody aircraft (88.0% by value) and one widebody aircraft (12.0% by value), which has an initial value of approximately $575.7 million, based on the average of the half-life base values provided by three appraisers. 

Merrill Lynch, Mizhuo and Goldman Sachs are leading the deal. Canyon Financial Services is the managing agent. Citi is the security trustee, operating bank and liquidity facility provider.

Eleanor Steed
By Eleanor Steed July 9, 2018 10:03