SKY Aviation Leasing International Limited (“SKY”), a full-service aircraft leasing company headquartered in Dublin, Ireland, has closed an issuance of USD 780.8 million of secured notes (the “Notes”) by S-JETS 2017-1 Limited (“S-JETS”), the company said.
S-JETS expects to use a portion of the proceeds of the Notes to acquire a portfolio of 21 Airbus and Boeing aircraft worth approximately USD 1 billion. On lease to airline customers worldwide, the aircraft have a weighted average age of 3.4 years and a weighted average remaining lease term of 7.5 years. The portfolio includes eight different aircraft models and 18 of the 21 aircraft are narrowbodies. SKY will act as servicer for the aircraft portfolio.
The offering consisted of three series of Notes: USD 657.8 million Series A Notes with an effective yield of 4.000%, USD 81.0 million of Series B Notes with an effective yield of 5.750%, and USD 42.0 million of Series C Notes with an effective yield of 7.125%. The Series A Notes have an initial loan-to-value (“LTV”) of 66.3% and were rated A by Standard & Poor´s (“S&P”) and Kroll Bond Rating Agency (“KBRA”); the Series B Notes have an initial LTV of 74.5% and were rated BBB by S&P and KBRA; and the Series C Notes have an initial LTV of 78.7% and were rated BB by S&P and KBRA.
Both the Series A Notes and Series B Notes have an initial expected maturity of 8.0 years and initial expected weighted average life of 4.6 years while the Series C Notes have an initial expected maturity of 7.7 years and initial expected weighted average life of 3.4 years. An affiliate of SKY acquired the E Certificates of S-JETS.
SKY expects to refinance its existing warehouse debt financing facility with proceeds from the S-JETS transaction and a new warehouse debt financing facility worth over USD 750 million.
SKY Leasing (https://www.skyleasing.com) is a premier aircraft leasing group with headquarters in Dublin, Ireland and a regional office in San Francisco, California. As a full-service leasing platform, SKY Leasing leverages its experience, global networks, industry insights, and managerial talent to acquire and lease new and young mid-life aircraft.