Share Price

Aviation Finance – Important deal 2015

In February 2015, DVB closed its first aircraft asset-backed securitisation (ABS). The Aviation Investment Management (AIM) team, in its capacity as investment advisor to the Deucalion Aviation Funds, completed the sale of 20 aircraft – valued at approximately US$814 million – to a new special purpose company, which co-issued US$667 million of Regulation S/Rule 144A DTC eligible notes (the Notes) with the concurrent direct placement of more than 90% of the equity to a new investment partner for DVB.
The bond format offering introduced a number of structural innovations, and was rated by Standard & Poor’s Ratings Services (S&P) and Kroll Bond Rating Agency (KBRA). The offering was significantly oversubscribed and widely distributed to investors, achieving the tightest pricing on an aircraft ABS transaction since the most recent financial crisis. The Notes were backed by a portfolio of 20 aircraft on lease with 13 airlines, the vast majority of which are flag carriers. The portfolio had a weighted average age of 5.6 years and a weighted average lease term remaining of 6.2 years. The portfolio was predominantly composed of Airbus aircraft and was unique for recent aircraft ABS deals, insofar as, by value, 55% of the portfolio was comprised of widebody aircraft.

The deal was a landmark transaction for DVB, and testimony to the strength, depth and quality of the whole Aviation platform. DVB’s Aviation Asset Management team was appointed servicer of the portfolio, DVB Capital Markets was a Joint Bookrunner of the 144A bond placement, and the Bank also acted as liquidity facility provider to the bond holders.

Expand all + / Collapse all -