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Aviation Finance – Important deal 2016

In April 2016, Aviation Investment Management (AIM), in its capacity as consultant to the Deucalion Aviation Funds, signed a sale agreement with one of DVB’s long-standing partners, AerCap, for the purchase of a portfolio of 37 aircraft.
The well-diversified portfolio of mid-life assets formed the basis for a new joint venture ‒ called KDAC ‒ between Deucalion Limited and one of its investment firm partners. The subject deal, with its substantial size, offered the opportunity to build a platform with the flexibility to grow and explore multiple exit opportunities.
The portfolio’s size, equity requirement, and average age of ten years represented challenges for some competing bidders. By utilising the resources and expertise of our wider Aviation platform, AIM was able to identify value in the portfolio where others had been unable to do so. Furthermore, the execution capabilities of AIM were an added attraction for the seller which was looking to meet a tight closing timetable.

Our Aviation Asset Management team was appointed servicer of the portfolio and our structured lending team joined the senior debt facility as a co-underwriter with BNP Paribas (lead arranger) and Citibank (co-underwriter). The transaction reinforced our position as a market leader when it comes to managing experienced third-party equity in large mid-life aircraft deals.

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