Initiator KG Allgemeine Leasing (KGAL) is expected to launch a new fund, SkyClass 58 in the German Kommanditgesellschaft (KG) market, later this month to invest in Airbus A319 aircraft.
Affiliate German company German Operating Aircraft Leasing is in the process of acquiring a total of 12 A319s from UK operator EasyJet under sale and leaseback transactions with lease terms through the second half of 2018, according to the offering prospectus.
The fund is expected to have a tenor of five and a half years. Under SkyClass 58, investors can participate with €10,000 minimum investment. Annual distributions are 8% over the period.
At the end of January, six A319 aircraft (MSNs 2289, 2300, 2360, 2412, 2477, 2481) had already closed. The aircraft were delivered new to EasyJet between September 2004 and June 2005.
According to the prospectus, the first aircraft transaction closed on 23 January 2013. The aircraft (MSN 2289) was acquired at €13.9 million ($18.1 million) and is being leased back to EasyJet for a period of five years and three months, for an initial $222,841 a month rental rate.
EasyJet is the debt provider in the transaction. The loan amounted to $13.575 million at 22 January 2013 while the residual value at the termination of the loan agreement is expected to be approximately $4.8 million.
The second aircraft (MSN 2300) is being leased at $220,541 a month through June 2018.
The rental rate of the third aircraft (MSN 2360) is being leased at $216,504 a month through August 2018.
The fourth aircraft (MSN 2412) is being leased at $210,793 a month through November 2018, while the fifth aircraft (MSN 2477) is being leased at $211,055 a month through May 2018.
The final aircraft (MSN 2481) is being leased at $210,459 a month through June 2018.
A second batch of A319s (MSNs 2492, 2503, 2514, 2527, 2528, 2538), all delivered new to EasyJet in 2005, will close on 20 June this year.
The lease rates are between $215,453 and $218,909 a month, according to the prospectus.
German Operating Aircraft Leasing is the remarketing and asset manager in the transaction.