BOC Aviation to Sell 17 Aircraft to Silver Aircraft Lease Investment

BOC Aviation signed an agreement to sell a portfolio of 17 aircraft to Silver Aircraft Lease Investment I and affiliates (SLVRR 2019-1).

To finance a portion of the purchase of the aircraft portfolio, SLVRR 2019-1 has issued three tranches of notes, comprised of $443 million of 3.97% Series A notes, $73 million of 4.95% Series B notes and $32 million of 6.9% Series C notes. The source of repayment for the notes will be limited to the aircraft portfolio, the leases and related collateral.

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. These commercial jet aircraft are currently on lease to 14 airlines in nine countries and regions, and comprise eight 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 6 years and weighted average remaining lease term of 5.4 years, based on weighted average appraised values as of 31 March 2019.

BOC Aviation will continue to manage the portfolio going forward.

BOC Aviation is a global aircraft operating leasing company with a fleet of 507 aircraft owned, managed and on order. Its owned and managed fleet was leased to 94 airlines worldwide in 39 countries and regions as at March 31, 2019

Oak Hill Advisors is an independent investment firm with approximately $34 billion of capital under management across distressed and performing credit investments. OHA has over 25 years of experience investing in a variety of asset classes, including performing and non-performing corporate credit, shipping, real estate, aviation and structured products as well as private equity.

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