GECAS and Sculptor close STARR 2019-2

GECAS and Sculptor Capital Management has closed STARR 2019-2.

Under the terms of the transaction, GECAS is selling 20 in-production Boeing and Airbus narrow bodies to START III. The diversified portfolio has an average aircraft age of 8.4 years and includes aircraft currently on lease to 17 airlines in 14 countries, with a total appraised value of approximately $539 million.

START III is financing its acquisition through its issuance of 144A/Reg. S debt and equity. Similar to the STARR 2018-1 transaction – the first aircraft portfolio purchase to include 144A tradeable equity and a dedicated asset manager for equity investors – and STARR 2019-1, an affiliate of Sculptor will serve as an asset manager and GECAS will continue to service the portfolio.

An affiliate of Sculptor will serve as an asset manager on behalf of the syndicated equity investors advising START III’s board regarding portfolio matters. In this capacity, Sculptor will provide increased transparency on behalf of START III. through enhanced investor reporting to improve liquidity for debt and equity investors.

With nearly $1 trillion in outstanding market value in commercial aviation, this asset manager structure aims to broaden the investor base in the sector and bring increased institutional capital to the space, similar to other securitisation markets such as CLOs. In addition, funds managed by Sculptor have invested equity in START III.

The sales are subject to typical conditions precedent including any regulatory approvals that may be necessary.