Fifth Street Finance announced its portfolio company in the aircraft leasing sector, First Star Aviation, has successfully sold one 2002 Airbus A320-200 aircraft to Finnair Aircraft Finance Oy, the aircraft leasing division of the Finnair Group.

First Star, through its Bermuda subsidiary, had originally purchased the aircraft in February 2014. The aircraft was on a long-term lease with the airline Finnair through 2017. First Star realized an unlevered internal rate of return of 19.1% from the combined rents collected and subsequent sale of the aircraft to the airline.

Since its inception in 2013, First Star has invested in 11 mid-life aircraft and opportunistically traded five aircraft, generating a strong track record of realized returns for FSC.

First Star’s current fleet includes the 737-800, A320-200 and 767-300 platforms on lease to five different carriers across the U.S., Asia and Europe.

Pradeep Hathiramani, head of First Star commented, “We are very pleased with the successful sale of this aircraft, as we continue to optimize our fleet based on special situation opportunities within the mid-life aircraft space.”