BBAM and Nomura Babcock & Brown Close the First Aircraft in a $1.12 Billion Combined EETC JOLCO Transaction with British Airways
SAN FRANCISCO, Aug. 26, 2019 /PRNewswire/ -- BBAM Limited Partnership (BBAM) today announced, alongside its long-term partner Nomura Babcock & Brown Co., Ltd. (NBB), the closing of a Japanese operating lease with call option (JOLCO) transaction with British Airways for an A350-1000. This is the first JOLCO closing in a $1.12 billion transaction combining senior secured enhanced equipment trust certificates (EETC) and JOLCO equity in relation to a number of new generation British Airways operated aircraft.
The transaction will provide financing for six A350-1000 aircraft and two A320neo aircraft. The deal allows the aircraft to be financed by the proceeds from the British Airways 2019-1 EETC certificates and JOLCO equity arranged by NBB and BBAM.
"BBAM structured the JOLCO element of this transaction and we are delighted to further build on our strong relationships with British Airways and IAG," said Steve Zissis, Chairman and Chief Executive Officer of BBAM. "The combination of EETC debt and JOLCO equity is an innovative structure that we have helped develop to provide our clients with flexible financing solutions."
Citigroup was the sole structuring agent and joint bookrunner for the EETC deal. Credit Suisse was the other joint bookrunner. Deutsche Bank, Goldman Sachs and Morgan Stanley were the passive bookrunners.
BBAM is the structuring agent for NBB and the JOLCO equity investors.
About BBAM
BBAM is the world's largest dedicated manager of investments in leased commercial jet aircraft providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors. BBAM currently has more than US $27 billion of assets under management and employs over 150 professionals at its headquarters in San Francisco and in additional offices in New York, London, Tokyo, Singapore, Zurich, Dublin, and Santiago. BBAM has a 30-year partnership with NBB providing origination, management and remarketing for over 2,000 investors. For more information about BBAM, please visit its website at www.bbam.com.
For information about NBB, please visit its website at http://www.nbb.co.jp/nbb/english/.
For further information:
BBAM
Gavin Mercer
Senior Vice President
+353 1 231 1900
[email protected]
SOURCE BBAM Limited Partnership
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