BOC Aviation launches Silver ABS

Darren Wood
By Darren Wood June 25, 2019 11:57

BOC Aviation launches Silver ABS

BOC Aviation is in the market with its second asset backed securitisation (ABS) deal dubbed Silver 2019-1. The $548 million transaction is offered in three series of notes secured on a portfolio of 17 aircraft – 15 narrowbodies (six A320s, four 737-800s, three 737-700s, one A321 and one A319) and two widebodies (one 777-300ER and one 787-8) on lease to 14 lessees located in nine countries with a six years weighted average age and an average remaining lease term of approximately 5.4 years. All of the aircraft are currently owned by BOC Aviation, contrary to many recent ABS deal where the assets were yet to be acquired.

The deal comprises $443 million A notes rated A by Kroll, with an initial loan-to-value (LTV) ratio of 67.8&; $73 million B notes, rated BB with an LTV of 78.9%; and $32 million C notes rated BB with an 83.8% LTV.

BOC Aviation will remain as the servicer of the portfolio and although it will not retain any of the equity, it will receive 20% of the equity cashflow after the e note holder receives an internal rate of return (IRR) of 12%.

Deutsche Bank is leading the deal as sole structuring agent and lead bookrunner, with HSBC providing the nine-month liquidity facility.

Darren Wood
By Darren Wood June 25, 2019 11:57