Gecas has closed a $305 million engine asset backed securitization (ABS) last Friday to facilitate the sale of 32 aircraft engines.
Airfinance Journal understands that the deal comprises of a $305 million ABS, which acted as the debt for the transaction, combined with a $57.5 million subordinate E note certificate to an undisclosed institutional investor. The issuer is Turbine Engines Securitization Ltd.
Gecas created the ABS using special-purpose limited liability companies in Bermuda, the US and Ireland.
Turbine Bermuda and Turbine USA are co-issuing the series 2013-1A and 2013-1B notes.
The deal is split between a $275 million A tranche with an initial LTV of 73.2%, and an expected tenor 12.3-years. The A tranche, which was rated A by S&P, has a weighted average life (WAL) of 7.8-years, and a 5.125% coupon.
The $30 million tranche has an LTV of 81.2% and a 12.3-year expected tenor and WAL of 6.5-years. The B tranche is rated BBB by S&P and has a coupon of 6.375%.
The leases in this portfolio are mostly long-term leases, with a 57-month weighted average remaining maturity. The top lessees in the deal include Singapore Airlines, Emirates and GE Aircraft Engines.
The deal is secured against a mix of engines including CF34s, CFM56s, GE-90s, PW4170s, Trent 884s, and V2500s – all on-lease to 15 lessees globally.
Gecas will remain as servicer on the portfolio and $1 million from the issuance proceeds will be used to fund the maintenance support on the engines.
Citi acted as sole structuring agent and lead bookrunner. CA CIB acted as the liquidity provider and bookrunner. Millbank represented the underwriters and Holland & Knight represented Gecas. Kaye Scholer advised the private equity fund
