IAT Leasing Limited (IAT) has acquired a portfolio comprising nine narrow-body aircraft from Zephyrus Aviation Capital. The portfolio includes a mix of Boeing and Airbus models and is currently leased to eight airline operators based across North America, Europe and Asia. This strategic acquisition was made on behalf of funds managed by Blue Owl Capital (Blue Owl), with financing provided through a senior secured loan facility arranged by PK AirFinance.
Magnus Stephensen, Chairman of IAT Leasing: “This transaction reflects IAT Leasing’s continued commitment to growing a globally diversified portfolio of in-service narrowbody aircraft. The acquired portfolio features well-established lessees across multiple jurisdictions, reinforcing IAT’s strategy of delivering stable, long-term cashflows supported by high-quality credit counterparties.”
The transaction underlines IAT’s commitment to expanding its presence in the global aircraft leasing market, while also enhancing Blue Owl’s aviation portfolio. Ivan Zinn, Head of Alternative Credit at Blue Owl, commented: “The Blue Owl Alternative Credit team is excited to continue growing its aircraft portfolio with IAT Leasing. This transaction demonstrated the team’s ability to navigate a high degree of complexity across geographies and operators to provide a comprehensive capital solution to Zephyrus Aviation Capital.”
Marijn Kappen, Chief Commercial Officer at Zephyrus Aviation Capital, praised the execution of the deal, stating: “This portfolio sale delivered on a substantial part of the main aviation fund for our investors. The transaction with IAT and Blue Owl was executed efficiently, timely and in a practical manner, allowing all parties to maximise results.”
Legal counsel for the transaction was provided by Pillsbury on behalf of IAT and Blue Owl, while Vedder Price acted for Zephyrus and PK AirFinance. Mason Hayes & Curran served as Irish counsel to IAT, and KPMG provided tax advisory services.
