Merx Aviation is launching a $507 million securitisation to fund 25 aircraft as well as refinance a 2013 term loan.
The MAPS 2018-1 transaction will be offered in three tranches: $415 million-worth of A notes, $55 million in B notes and $37 million in C notes, a Kroll Bond Rating Agency report says. KBRA rates the notes "A", "BBB" and "BB", respectively.
In addition to funding the purchase of six new aircraft, the transaction refinances 19 aircraft funded by the 2013 AABS Limited Asset Backed Secured Term Loan. Merx owned the equity in the AABS deal and is now taking over the servicing of the aircraft.
Airbus A320-family and Boeing 737NG jets make up the fleet; 44% of them leased to airlines operating in developed markets, the rest operated in emerging markets. The initial weighted-average aircraft age of the portfolio is about nine years, and the weighted-average remaining lease term is 4.5 years.
The initial value of the portfolio is $611 million, based on the average of the half-life base values provided by Avitas, IBA Group and MBA as of December 2017, and $615 million adjusted for maintenance conditions as determined by Alton Aviation Consultancy as of March 2018.
Goldman Sachs is sole structuring agent, global co-ordinator and lead bookrunner, while Credit Agricole CIB is acting as liquidity facility provider. Maples Fiduciary Services is managing agent, while Merx will service the fleet.
Based in New York, Merx is an aircraft leasing management firm founded in 2012 by Apollo Investment, a business development company managed by Apollo Global Management.
Source: Cirium Dashboard
