BNP Paribas, Crédit Agricole Corporate & Investment Bank (CA-CIB) and Goldman Sachs are the underwriters on GE Capital Aviation Services' (GECAS) $650 million asset-backed securitisation (ABS), which closed earlier this month.
The ABS transaction is secured by 26 narrowbody aircraft.
The deal includes a $557 million A tranche priced at 4.875% and a $93 million B tranche priced at 6.875%. The transaction was oversubscribed, say market sources.
BNP Paribas was the joint lead arranger in the transaction. The co-syndication agents are BNP Paribas and Goldman Sachs, having underwritten about $300 million each.
Last month General Electric Capital, parent company of GECAS, issued a fixed- and floating-rate notes offering totalling $1.7 billion, secured by 137 aircraft on lease to US airlines.
According to a prospectus filed with the Securities and Exchange Commission, the proceeds from the three-part sale will be used for general corporate purposes.
The financing includes $1 billion in three-year, fixed-rate notes, which carry a 1% coupon; a $300 million three-year, floating-rate tranche at Libor plus 60 basis points and $400 million in fixed-rate seven-year notes, which carry a 2.1% coupon.
Morten Beyer & Agnew, Avitas and BK Associates appraised the portfolio, which includes 91 regional jets.
Goldman Sachs and Citigroup are the joint bookrunning managers, while BNP Paribas and Crédit Agricole are the passive bookrunners. Goldman Sachs is the sole structuring agent.