BOC Aviation closes Silver 2019-1 ABS offering

Darren Wood
By Darren Wood July 16, 2019 09:55

BOC Aviation closes Silver 2019-1 ABS offering

BOC Aviation has closed the offering of its second asset backed securitisation (ABS) deal dubbed Silver 2019-1.

The firm has signed an agreement to sell a portfolio of 17 aircraft to Silver Aircraft Lease Investment and affiliates.

The firm’s latest ABS offered three tranches of notes, comprises of $443 million of 3.97% Series A notes, rated A by Kroll / Fitch Ratings; $73 million of 4.95% Series B notes, rated BBB by Kroll / Fitch Ratings; and $32 million of 6.9% Series C notes rated BB by Kroll / Fitch Ratings.

The notes are backed by the 17 aircraft to be acquired from BOC Aviation.

These commercial jet aircraft are currently on lease to 14 airlines in nine countries and regions, and comprise of seven Airbus A320 family aircraft, seven Boeing 737NG aircraft, one Boeing 787-8 aircraft and one Boeing 777-300ER.

The portfolio has a weighted average age of six years and weighted average remaining lease term of nearly five and a half years, based on weighted average appraised values as of 31 March 2019.

BOC Aviation, with more than 25 years of aircraft leasing experience, will continue to manage the portfolio going forward.

The issuance of $123 million tradable Class E participating certificates financed the purchase of the balance of the aircraft portfolio. 

Oak Hill Advisors acted as the anchor equity investor, with the remainder of the certificates distributed to a number of institutional investors.

The notes are backed by the 17 aircraft to be acquired from BOC Aviation.

Darren Wood
By Darren Wood July 16, 2019 09:55