Aergo Capital announces pricing of inaugural aircraft portfolio transaction, ‘METAL 2017-1’

Aergo Capital Limited headquartered in Dublin, Ireland has announced the issuance of US$584.839m of secured notes (the Notes) by METAL 2017-1 Limited (METAL Cayman) and METAL 2017-1 USA LLC (METAL USA). Together METAL Cayman and METAL USA expect to use the proceeds from the sale of the Notes to acquire a portfolio of 26 aircraft with an appraised value of approximately US$690m from Aergo, which will in turn use such proceeds to refinance existing loans. Aergo Capital will act as servicer for the aircraft portfolio. The offering consists of four tranches of Notes: US$430.028m of Series A Notes with a coupon of 4.581% at par, US$86.006m of Series B Notes with a 6.5% coupon at 98.46% price, US$55.044m of Series C-1 Notes and US$13.761m of Series C-2 Notes with coupons of 8.0% and 9.75% respectively and prices of 98.62% and 99.56% respectively. The Series A Notes have an initial loan to value (LTV) of 62.5%, the Series B Notes have an initial LTV of 75%, and the Series C-1 and C-2 Notes have initial LTV’s of 83% and 85% respectively. The transaction was priced on October 30th 2017 and is expected to close on November 6th 2017.