Jetscape Announces Closing of $380.5M ABS Transaction

Jetscape Aviation Group announced the closing of its $380.5 million Eagle I Limited Series 2014-1 Asset Backed Securitization. Eagle I is the first ABS to close featuring an all-Embraer E-Jet portfolio and was priced with the tightest yield and margins for aviation ABS transactions since the global financial crisis.

Bank of America Merrill Lynch was the structuring lead bookrunner. DVB Capital Markets and Guggenheim Securities were joint bookrunners.
Deutsche Bank Americas is the trustee and operating bank and a 12 month liquidity facility is provided by DVB Bank SE.

Jetscape Commercial Jets Malta is the Servicer and Jetscape is the administrative agent. Jetscape was represented by Greenberg Traurig and the underwriters were represented by Pillsbury Winthrop Shaw Pittman.

On the investment grade notes, the weighted average yield is 4.18% and its 2.70% weighted average spread is the tightest spread on all aviation ABS closed post crisis. This deal was also the first post-crisis aviation ABS to price with BB rated C notes included – the all-in weighted average yield including the BB Rated C notes is 4.61%.

The notes are supported by a portfolio of 21 Embraer aircraft of which 75.8% are E190/195s, and the remainder are E170/175s. The Eagle I portfolio initially includes leases to 10 commercial airlines located in 10 countries and has an average age of 4.4 years, with an average remaining lease term of 4.8 years.

“In addition to a receptive market and healthy industry dynamics – the vigorous demand among investors, including strong interest among first-time aviation ABS investors in our Eagle I ABS transaction is a testament to the structuring and extensive marketing effort that was put forth by our bankers, legal advisors, Embraer and our Jetscape team said John Evans, chairman and CEO. We sincerely appreciate their contributions towards the successful closing of this transaction. We also appreciate the confidence that our Eagle I ABS investors have demonstrated in Embraer’s E-Jets and in Jetscape as the servicer and a first-time ABS issuer.”

Jetscape’s objective for launching the ABS transaction was to refinance debt that was largely secured in the aftermath of the global financial crisis and to put a more efficient, long-term capital structure in place for the company.

To view the full Jetscape news release, (including summary of key transaction statistics), click here.

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