Deucalion, DVB Bank’s aviation investment fund, priced a $667 million debut securitisation last week through an Irish special purpose vehicle called AIM Aviation Finance.
The ABS is supporting a portfolio sale of a fleet of 20, mostly Airbus aircraft, on lease to 13 operators. DVB will remain the servicer on the aircraft.
The securitisation, which priced last Friday, was oversubscribed and marks the first lessor ABS deal to use a 144a bond format to back an aircraft portfolio sale.
The ABS achieved the lowest coupon for any lessor ABS since 2008. The 14-year ABS is split between three note classes.
The $545 million class A notes achieved a coupon of 4.25% and were oversubscribed more than twice, while the $84 million class B notes had a margin of 5.12% and were oversubscribed by a factor of more than three.
The $38 million class C notes carry a coupon of 8.5%.
Airfinance Journal understands that the coupon on the A notes has been modelled at around 4.6% but sources close to the deal predicted that eventual coupons were likely to fall to around 4%.
