Avolon closes its Sapphire ABS transaction

Eleanor Steed
By Eleanor Steed March 23, 2018 18:49

Avolon closes its Sapphire ABS transaction

Avolon has closed its Sapphire Aviation Finance I (SAPA 2018-1) asset backed securitisation  (ABS).

The $633 million 4.250% A notes, rated A by Fitch and by Kroll Bond Rating Agency (KBRA), have a 4.30% yield; $97 million 5.926% B notes, rated BBB by Fitch and KBRA, were issued at a 6.00% yield; and $38.38 million of 7.385% C notes, rated BB, were issued at a 7.50% yield. The e notes were purchased by a third party, with a minority purchased by Avolon.

The notes are backed by a portfolio of 41 aircraft, with an appraised value of $962.4m. The Portfolio comprises a mix of narrowbody and twin-aisle aircraft leased to 30 lessees based in 19 countries. As at 9 February 2018, the portfolio had an average weighted age of 12 years. Avolon will act as servicer with respect to the portfolio and any additional aircraft acquired by the issuers.

Wells Fargo acted as Sole structuring agent, sole E note placement agent and joint bookrunner. BNP Paribas and Crédit Agricole also acted as joint bookrunners for the transaction. BNP Paribas was the liquidity facility provider.

Clifford Chance advised Avolon and the issuers, and Hughes Hubbard & Reed acted as counsel to the joint lead structuring agents.

Eleanor Steed
By Eleanor Steed March 23, 2018 18:49