ST Engineering has released that Total Engine Asset Management (TEAM), an engine leasing joint venture of its Aerospace arm, has entered into agreements for the sale of 30 aircraft engines using a securitization structure. This sale will enable the group to free up capital for future investments including aircraft engines and reduce TEAM’s capital employed.
The transaction comprises a diversified portfolio of 30 aircraft engines that power primarily narrowbody aircraft leased to 13 airlines across 11 countries, with a weighted average remaining lease term of about six years. The structure includes about US$257 million (approximately S$358 million) of fixed rate notes offered in three tranches and the placement of equity notes. It is anticipated that TEAM will retain 10% of the equity notes while an affiliate of Marubeni Corporation and one or more other investors will purchase the balance, subject to the satisfaction of customary closing and settlement conditions.
