Vx Capital Partners (Vx) has closed its inaugural asset-backed deal, becoming the first issuer since 1999 to securitize an all-freighter portfolio. The loan-format issuance generated US$189 million across three classes of term loans, secured by thirty-five 737 Classic freighters. Most of the aircraft were originally acquired in passenger configuration by Vx and subsequently converted and leased.
Vx Cargo 2018-1 Trust will be serviced by Vx through an affiliate, and the equity in the transaction will be retained by Vx Freighter Investment Fund (VXF). The US$107 million of equity behind VXF was raised in 2016.
Serving the transaction was BNP Paribas as lead structuring agent and Nord LB and DVB as co-managers. UMB is acting as the Trustee, Canyon CTS as the Managing Agent and DVB as the Liquidity Facility provider. Milbank Tweed served as counsel to the issuer and Hughes Hubbard represented the underwriter.
At close, the portfolio had a weighted average aircraft age of 23.1 years and weighted average remaining lease term of approximately 4.3 years. The aircraft are leased to 12 lessees in 12 countries, with three aircraft in the process of conversion. All but one aircraft are subject to lease.
