International aircraft leasing company Avolon announced the closing of a $636 million asset backed securitization for Emerald Aviation Finance Limited.
The closing of the successfully priced issue by Emerald represents Avolon’s initial transaction in the public debt markets. The Issue comprises $546 million of 4.65% class A-1 fixed rate asset backed notes and $90.21 million of 6.35% class B-1 fixed rate asset backed notes. Avolon will acquire the junior Class E Note issued by Emerald and will act as Servicer to Emerald.
On September 26, 2013 Avolon announced that Emerald, a newly established special purpose company, had priced a total of $636 million of fixed rate asset backed notes. The net proceeds of the issue are being used to acquire 20 aircraft from Avolon.
Highlights:
. Avolon’s inaugural aircraft securitization
. Proceeds will be used to refinance Avolon’s existing debt and extend its debt maturity
. The success of the securitization reflects the quality of Avolon’s aircraft fleet and the strength of the Group’s asset management capabilities
. ABS portfolio comprises 20 aircraft manufactured by Airbus, Boeing and
Embraer
. Aircraft have an average age of 3.07 years and comprise a mix of single aisle and twin aisle jets
.15 lessees in portfolio with an average remaining lease term of in excess of seven years – 40% of lessees domiciled in the emerging markets of Asia Pacific, Eastern Europe and Latin America
. Avolon has raised US$1.7 billion of debt capital in 2013
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