First all-cargo aircraft ABS launched

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 19, 2018 22:14

First all-cargo aircraft ABS launched

Vx Capital Partners launched the first all-cargo aircraft asset backed securitisation (ABS) last week. Offering $189 million of loans in three tranches: $138.5 million of class A loans, with a 55.4% loan-to-value ratio, which are rated A by Kroll; $35.5 million class B loans, rated BBB, with a 69.6% LTV; and $15 million BB-rated C class loans, with a 75.6% LTV. All three classes have a maturity of 15 years. The A and B loans amortise on a nine-year straight-line schedule, while the class C loans amortise on a five-year straight-line schedule.

The loans are secured on a portfolio of 35 freighter aircraft, including 33 737-400SFs and two 737-300SFs, on lease to 12 lessees located in 10 countries, although three aircraft not subject to a lease agreement, including two aircraft each subject to LOI for lease and one aircraft being marketed for lease. Following the closing of the ABS, 14 of the aircraft are expected to be purchased from three third-party sellers and are subject to respective binding purchase agreements.

The portfolio has a weighted average remaining lease term of approximately 4.31 years, with approximately 9.5% initially not subject to a lease. As of Q3 2018, the portfolio has an initial value of approximately $249.9 million. The portfolio has an aggregate current market value of approximately $283.6 million, which is 13.5% greater than the maintenance adjusted base value.

Vx Cargo 2018-1 Trust is the borrower, with Vx Freighter Investment Manager as the servicer. BNP Paribas is the sole structuring agent and lead arranger, with DVB providing the liquidity facility and UMB acting as the trustee.

 

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 19, 2018 22:14