New issuer, Airborne Capital, is in the market with its inaugural asset backed securitisation (ABS) transaction, led by Deutsche Bank, Mizuho and Credit Agricole-CIB as joint lead structuring agents and joint lead bookrunners.
The $637 million Tailwind 2019-1 ABS is offering in three tranches of notes secured on a portfolio of 17 aircraft – 15 narrowbody aircraft: seven A320-200s, three A320neos, three A321-200s and two 737-800s; and two widebodies: one 777-300ER and one A330-300 – with a weighted average age of 4.7 year and an average remaining lease term of approximately 6.3 years.
The transaction comprises: $510million A-rated A notes with an initial loan-to-value (LTV) ratio of 66.5%; $81 million BBB-rated C notes with an LTV of 77%; and $46 million BB- rated C tranche with an LTV of 83%.
The A and B notes amortise on a 13.5-year straight-line schedule, while the C notes amortise on a seven-year straight-line schedule.
Airborne will purchase at least 10% of the equity certificates supporting the E Note issued by Tailwind 2019-1, which it will be required to hold until the expected final payment date in November 2026.
Credit Agricole-CIB is providing the nine-month liquidity facility, with SG American Securities at the joint bookrunner.
Tailwind 2019-1 will include FEXCO Aviation Services as a first time managing agent for an aircraft ABS transaction.