Avolon, the international aircraft leasing company, has released that Sapphire Aviation Finance I Limited and Sapphire Aviation Finance I (US) LLC (collectively the “Issuers“ or “SAPA 2018-1”), newly established special purpose companies, closed a total of US$768.4m of Fixed Rate Secured Notes (the “Issue”).
The Issue comprised of US$633m of 4.250% Series A Fixed Rate Secured Notes (the “Series A Notes”) issued at a 4.30% yield; US$97m of 5.926% Series B Fixed Rate Secured Notes (the “Series B Notes”) issued at a 6.00% yield; and US$38.38 million of 7.385% Series C Fixed Rate Secured Notes (the “Series C Notes”) issued at a 7.50% yield (collectively, the “Notes”).
The Issuers also offered E Notes and S Certificates (together the “Equity Notes”) representing the equity interest in SAPA 2018-1, a majority of which were purchased by a third party and a minority of which were purchased by Avolon.
The Notes are backed by a portfolio of 41 aircraft, with an appraised value of US$962.4m, which will be acquired by SAPA 2018-1 from Avolon using the proceeds of the issuance. The Portfolio comprises a mix of narrowbody and twin-aisle aircraft leased to 30 lessees based in 19 countries. As of February 9, 2018, the Portfolio had an average weighted age of 12 years.
Avolon will act as servicer with respect to the Portfolio and any additional aircraft acquired by the Issuers.
