Sunday, February 5, 2017

DAE in debut aircraft securitisation deal

Dubai Aerospace Enterprise (DAE), a globally recognized and award-winning aerospace company, has announced the successful pricing of its inaugural asset backed securitisation (ABS) deal for US-based Falcon Aerospace.

As per the deal, Falcon Aerospace Limited and Falcon Aerospace US will issue $410 million of asset-backed secured term loans. The duo expect to use the proceeds to purchase 21 in-production, narrow-body aircraft in a transaction, in which DAE will be the servicer.

DAE chief executive Firoz Tarapore said: "We are extremely pleased with the very successful pricing of our inaugural ABS transaction. We welcome the opportunity to broaden our financing base and partner with sophisticated investors in the US capital markets."

"This transaction will help us achieve our goal of substantially increasing our footprint in the aircraft leasing space," he stated.

Falcon 2017-1 will issue three tranches of asset-backed secured term loans - $315 million of 4.581 per cent Class A Loans; $65 million of 6.30 per cent Class B Loans and $30 million of 8.353 per cent Class C Loans.

The Class A Loans will have an initial loan-to-adjusted base value (LTV) of 63.5 per cent and are expected to be rated A(sf) by Standard & Poor’s Ratings Services (S&P) and Kroll Bond Rating Agency (KBRA), said the Dubai aviation firm in a statement.

The Class B Loans will have an initial LTV of 76.6 per cent and are expected to be rated BBB(sf) by S&P and KBRA, and the Class C Loans will have an initial LTV of 82.6 per cent and are expected to be rated BB(sf) by S&P and KBRA, it stated.

Falcon Aerospace Limited will also issue an E Certificate in partial consideration for the sale of the aircraft, it added.-TradeArabia News Service

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