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