Aergo Capital launches debut ABS – METAL 2017

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 14, 2017 10:30

Aergo Capital launches debut ABS – METAL 2017

Aergo Capital is in the market with its debut asset backed securitisation (ABS) deal – METAL 2017-1 – which is secured on a portfolio of 26 aircraft.

The $605.5 transaction comprises four tranches: $403 million A notes, rated A by Kroll with an initial loan-to-value (LTV) of 62.5%; $86 million B notes, rated BBB by Kroll, with an initial LTV of 75%; and two tranches of C notes – $55 million C-1 notes, rated BB with an LTV of 83% and $34.4 million C-2 notes, rated B with an LTV of 88.

The 26-aircraft portfolio, which are on lease to 12 lessees located in 10 countries, have an initial weighted average aircraft age of approximately 5.3 years with a remaining lease term of approximately 7.8 years. The 26 aircraft represent approximately 60.5% (by number of aircraft) of Aergo’s owned and committed portfolio.

The portfolio comprises three A320-200s, one A321-200, one A330-200, one A2330-300, two 737-800s, six 737-900ER, one ATR42-500, one ATR72-600 and nine ATR72-500s. Of slight concern to the rating agencies is the concentration of the lessees in the emerging markets and with six aircraft with the Lion Group.

Goldman Sachs is the sole structuring agent, global coordinator and sole bookrunner.
Phoenix American Financial Services is the managing agent, the security trustee and operating bank is Wells Fargo. Natixis is providing the liquidity facility. Aergo Capital is the servicer.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 14, 2017 10:30