BBAM Limited Partnership (BBAM) has announced it has partnered with Nomura Babcock & Brown Co., Ltd. (NBB) to close a Japanese operating lease with call option (JOLCO) transaction with British Airways for an A350-1000, the company said.
This is the first JOLCO closing in a USD 1.12 billion transaction combining senior secured enhanced equipment trust certificates (EETC) and JOLCO equity in relation to a number of new generation British Airways operated aircraft.
The transaction will provide financing for six A350-1000 aircraft and two A320neo aircraft. The deal allows the aircraft to be financed by the proceeds from the British Airways 2019-1 EETC certificates and JOLCO equity arranged by NBB and BBAM.
Citigroup was the sole structuring agent and joint bookrunner for the EETC deal. Credit Suisse was the other joint bookrunner. Deutsche Bank, Goldman Sachs and Morgan Stanley were the passive bookrunners.
BBAM is the structuring agent for NBB and the JOLCO equity investors.
BBAM is a manager of investments in leased commercial jet aircraft providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors. BBAM currently has more than USD 27 billion of assets under management and employs over 150 professionals.