Fleet management solutions provider Zephyrus Aviation Capital has announced the closing of the Company´s first structured ABS financing, ZCAP 2018-1, the company said.
Zephyrus Capital Aviation Partners 2018-1 Ltd and Zephyrus Capital Aviation Partners 2018-1 LLC will borrow $336.6 million, which will be used to finance the acquisition of a diversified portfolio of 21 in-production, predominantly narrow-body aircraft on lease to 19 lessees in 14 countries, from Dublin-based Avolon.
ZCAP 2018-1 is comprised of a single Class A tranche of loans in the initial principal amount of $336.6 million (the “Loans”) with a fixed coupon of 4.605% yielding 5.153%. The Loans have an initial loan-to-value ratio (calculated as the note amount divided by the lower of the mean and median of appraisers´ base values and current market values) of 74% and have been rated A / A by S&P Global Ratings and Kroll Bond Rating Agency, respectively.
Deutsche Bank acted as Sole Structuring Agent, and Canyon CTS served as the Managing Agent, for the ABS transaction. Vedder Price advised Zephyrus and the Borrowers, Clifford Chance advised Deutsche Bank, A&L Goodbody acted as Irish counsel, and Maples and Calder acted as Cayman Islands counsel.
Zephyrus is backed by funds managed by Virgo Investment Group, which has been investing in aviation since 2010. Seabury Capital Group served as the sole investment banking advisor to Zephyrus for the 21-aircraft acquisition and is a minority equity stakeholder in the Company as part of its merchant banking strategy.
Zephyrus Aviation Capital is an aircraft and engine leasing & trading company led by a team of industry veterans and focused on aircraft which are in the mid to mature stage of their lifecycle.