Senate votes against increasing Ex-Im Bank’s cap
22nd March 2012
Apollo Aviation’s debut securitisation transaction closed oversubscribed on November 21.
The $556.3 million Apollo Aviation Securitization Equity Trust 2014-1 is comprised of two tranches. The $422.052 million A tranche with an initial loan-to-value of 55% and an A rating from Kroll Bond Rating Agency, priced at 5.125%. The $134.289 million B notes, with an LTV of 72.5% and a BBB Kroll rating, priced at 7.375%. Both tranches have a final maturity of November 15, 2029.
The notes are secured by a pool of 40 aircraft, with an average age of 14.2 years and an average remaining lease term of 3.6 years. The aircraft are all in production and currently on lease to 20 airlines in 15 countries. The narrowbody pool, comprised of 35 aircraft, accounts for 76.1% of the initial portfolio and includes a mix of A319/320/321 and 737-700/800 as well as older models of the 737 (-600/-900). The five widebodies are A330-200/300, representing 23.9% of the initial pool value. Apollo Aviation Management Limited is the sole servicer.
Goldman Sachs was sole structuring agent and global coordinator. Joint lead arrangers were Goldman Sachs Lending Partners, DVB Capital Markets, and Crédit Agricole Corporate & Investment Bank. Wells Fargo was the Facility Agent and Trustee, with DVB Bank as Liquidity Facility Provider.
The deal was oversubscribed and succeeded in attracting a similar investor base to the Castlelake securitization that closed in March although the tighter pricing on both tranches and the younger age of the pool of aircraft attracted new insurance investors that are reported to have been hesitant to join the Castlelake deal.