Jetscape Announces Closing of $380.5M ABS Transaction

FORT LAUDERDALE, Fla., Dec. 22, 2014 /PRNewswire/ -- Jetscape Aviation Group ("Jetscape") announces the closing of its $380.5 million Eagle I Limited Series 2014-1 Asset Backed Securitization ("ABS").  Eagle I is the first ABS to close featuring an all-Embraer E-Jet portfolio and was priced with the tightest yield and margins for aviation ABS transactions since the global financial crisis.

Bank of America Merrill Lynch was the Structuring Lead Bookrunner.  DVB Capital Markets and Guggenheim Securities were Joint Bookrunners.  Deutsche Bank Trust Company Americas is the trustee and operating bank and a 12 month liquidity facility is provided by DVB Bank SE.  Jetscape Commercial Jets Malta is the Servicer and Jetscape, Inc. is the Administrative Agent.  Jetscape was represented by Greenberg Traurig and the underwriters were represented by Pillsbury Winthrop Shaw Pittman.

Summary of key transaction statistics –

Key transaction highlights include –

• First aircraft securitization with a fleet comprised entirely of Embraer manufactured commercial jets
• First broadly distributed note-form 144A pooled-aircraft ABS deal issued since the credit crisis
• Tightest all-in yield through the BBB tranche of all aircraft ABS deals issued post-crisis (4.18%)
• Most investors of any pooled aircraft ABS deal issued post-crisis with 21 investors
• Attracted orders for over $1.5 billion, nearly four times oversubscribed
• The investor group included seven first time aviation ABS investors on the A-1 tranche, nine new investors on the A-2 tranche and four first time aviation ABS investors on the B tranche
• The structure allows for increased asset sale flexibility relative to other aircraft ABS transactions
• First time-tranched aircraft ABS issued post-crisis, which attracted new investors to aviation ABS and helped to mitigate investor overlap between the classes
• PIK BB tranche included in capital structure allowing increased leverage without impacting size of senior tranches
• Achieved target ratings from two major rating agencies without requirement for back-up servicer

On the investment grade notes, the weighted average yield is 4.18% and its 2.70% weighted average spread is the tightest spread on all aviation ABS closed post crisis.  This deal was also the first post-crisis aviation ABS to price with BB rated C notes included – the all-in weighted average yield including the BB Rated C notes is 4.61%.

The notes are supported by a portfolio of 21 Embraer aircraft of which 75.8% are E190/195s, and the remainder are E170/175s.  The Eagle I portfolio initially includes leases to 10 commercial airlines located in 10 countries and has an average age of 4.4 years, with an average remaining lease term of 4.8 years.

"In addition to a receptive market and healthy industry dynamics – the vigorous demand among investors, including strong interest among first-time aviation ABS investors in our Eagle I ABS transaction is a testament to the structuring and extensive marketing effort that was put forth by our bankers, legal advisors, Embraer and our Jetscape team said John Evans, Chairman and Chief Executive Officer.  We sincerely appreciate their contributions towards the successful closing of this transaction.  We also appreciate the confidence that our Eagle I ABS investors have demonstrated in Embraer's E-Jets and in Jetscape as the Servicer and a first-time ABS issuer."

Jetscape's objective for launching the ABS transaction was to refinance debt that was largely secured in the aftermath of the global financial crisis and to put a more efficient, long-term capital structure in place for the company.

"As noted, the transaction included several milestone achievements and met all of our goals, including clearing capacity with our commercial bank lenders to help facilitate our future growth.  We are in discussions with them to secure a new warehouse facility and we intend to use up-front proceeds and future cash flows generated by the ABS to continue growing our business," says Evans.

About Jetscape

Jetscape was founded in 2000 and engages in commercial aircraft leasing, management, remarketing and advisory services – providing innovative, custom-tailored solutions to commercial aircraft owners and operators worldwide.  Jetscape currently owns and manages 40 aircraft with 15 airline operators in 15 countries. 

Media Contact:

Mark H. Balentine

954-763-4737

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SOURCE Jetscape