BBAM launches Horizon Aircraft Finance II

victoria@aviationnews-online.com
By victoria@aviationnews-online.com June 18, 2019 11:52

BBAM launches Horizon Aircraft Finance II

BBAM is in the market with its third aircraft asset backed securitisation – Horizon Aircraft Finance II (Horizon 2019-1). This issuance comprises tree tranches of notes: $375 million A-rated A notes, with an initial loan-to-value (LTV) ratio of 65.77%; $69 million BBB-rated B notes, with a 77.8% LTV; and $41 million C notes, rated BB with a LTV of 85%.

The A and B notes amortise on a 13-year straight-line schedule, while the C notes amortise on a seven-year straight-line schedule.

The notes are secured on a portfolio of 20 narrowbody aircraft – 12 737-800s, six A320-200, one A319-100 and one 737-900ER – on lease to 16 lessees in 13 countries. The initial weighted average aircraft age of the portfolio is approximately 8.5 years with a weighted average remaining lease term of approximately 4.6 years. The portfolio has an initial value of approximately $570.5 million.

The three largest lessees by aircraft value are Eastar Jet, Garuda and Malaysia Airlines Berhad. Some 13.2% of the portfolio (by value) or three aircraft are on lease to airlines which are a part of the AirAsia Group: AirAsia India (two aircraft / 8.6% by value) and Thai AirAsia (one aircraft / 4.6% by value). Eight aircraft, or 32.9% (by value) have leases expiring in the next 24 months.

Citi, Credit Suisse and Mizuho are joint lead structuring agents and joint lead bookrunners. MUFG is providing the liquidity facility. BBAM is the servicer and will retain a minority share of the equity for the duration of the tenor.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com June 18, 2019 11:52