ACG out with Merlin ABS pre-sale report

Eleanor Steed
By Eleanor Steed December 13, 2016 16:05

ACG out with Merlin ABS pre-sale report

Aviation Capital Group is out with a pre-sale report for its $250.8 million asset backed securitisation, which refinances a portfolio of 18 737-family and A320-family aircraft on lease to 17 airlines located in 16 countries. The portfolio has an initial weighted average age of approximately 14.3 years, while the weighted average remaining term of the initial lease contracts is approximately 2.1 years. The portfolio has an initial value of approximately $334.4 million, and an aggregate maintenance-adjusted current market value of approximately $323.5 million.

The issuer is Merlin Aviation Holdings, an ACG subsidiary, ACG Aircraft Leasing Ireland, will be the servicer. The deal is being arranged by sole structuring agent and joint bookrunner Credit Suisse. The 18 month liquidity facility is provided by MUFG Securities. Canyon Financial Services is the managing agent, with Wilmington Trust as the trustee, Security Trustee and Operating Bank.

The deal is structure in three tranches: $209million A notes with an initial loan-to-value ratio of 62.5%, rated A by Kroll Bond Ratings; $25.1 million C note tranche with an LTV of 70% and rated BBB; and $16.7 million C notes rated BB and with an LTV of 75%.
ACG is retaining the E note via one of its subsidiary companies.

Eleanor Steed
By Eleanor Steed December 13, 2016 16:05