Sirius Aircraft Leasing Fund reveals its IPO aims

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 9, 2018 16:48

Sirius Aircraft Leasing Fund reveals its IPO aims

Start-up leasing company headed by Howard Miller, former deputy CEO of Ryanair Holdings, and Ed Coughlan, Sirius Aircraft Capital Holdings Limited (SACHL), has officially announced its intention to file for an initial public offering (IPO) for its Sirius Aircraft Leasing Fund to raise up to $250 million and list on the London Stock Exchange.

The Guernsey investment company is also launching a twelve month placing programme in respect of up to a further 300 million ordinary shares and/or C shares. It aims to invest in portfolios of used single-aisle aircraft with leases in place to globally diversified airlines, and is planning to use gearing to enhance equity returns with expected gearing of ca. 50% of the total assets under management.

The company will target an annualised dividend yield of 8% (on the issue price of US$1.00 per ordinary share) once fully invested, and a total return target of an IRR of 10% per annum (on the Issue Price of US$1.00 per ordinary share) over the long term. The company intends to pay dividends on a quarterly basis.

SACHL will act as investment adviser to the company. Patrick O’Brien former senior tax partner at KPMG Ireland and global industry leader, will be joining SACHL as non-executive director and chairman of the board.

SACHL says that it “believes that an attractive opportunity exists in terms of the acquisition, lease and sale of used aircraft due to positive supply and demand dynamics” which includes a steady supply of assets, high demand for leased aircraft, engine values and “the effective management of the aircraft maintenance compensation relating to the maintenance condition of the airframe and engines can deliver enhanced returns”.

Howard Millar, CEO of the Investment Adviser commented: “We are pleased to announce our intention to launch the IPO of the Sirius Aircraft Leasing Fund. The fund will invest in used single aisle aircraft to target an attractive dividend yield of 8 per cent. per annum with the potential for capital upside. The senior management team of the investment adviser have in excess of 80 years’ experience in aviation and have outstanding capability and contacts in this industry. Globally we intend to leverage this capability to access portfolios of in demand single aisle aircraft (with leases attached), principally from lessors disposing of older aircraft in order to maintain the average age of their fleet. We are currently assessing a number of attractive portfolios and anticipate that the funds raised will be deployed within 6 months of Admission.”

Liberum Capital is acting as sponsor, joint financial adviser and joint placing agent in relation to the issue, and working alongside J&E Davy (Davy) as joint financial adviser and joint placing agent.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 9, 2018 16:48