HEH Aviation Southampton Beteiligungsgesellschaft, the German fund arranged by Hamburger EmissionsHaus (HEH) has acquired an Embraer 175 aircraft from UK regional operator Flybe under a sale and leaseback transaction.
The 88-seat aircraft (MSN 17000355) was delivered new to Flybe in December 2012.
Hamburger EmissionsHaus says in a prospectus the aircraft was purchased for $26.4 million.
NordLB provided the debt portion for the transaction, say sources.
HEH has approached the equity market for the funding of the delivery. According to the prospectus, annual distributions starts at 7.5% and are scheduled to increase to 12% in 2023 and 15% in 2030, the final year. Total distributions are projected at 243%, including sale proceeds, during the term.
The transaction marks the second time the German fund acquires assets from the UK regional carrier. In 2011, Hamburger EmissionsHaus purchased 11 Bombardier Dash 8 Q400 aircraft from Bombardier, which were originally ordered by the UK regional operator Flybe. The portfolio involves aircraft that range in build year to July 2009 from October 2007. The 11-aircraft portfolio is leased to Flybe under an operating agreement with an initial term of 10 years and an option to extend for two years. Debt financing and equity participation was arranged jointly between Hamburger EmissionsHaus and Airfund Corporation.
In 2011, HEH also closed three Bombardier CRJ1000 funds, which lease the aircraft to Air Nostrum under 10-year operating leases.