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Aergen refinances HAIL 2016-1 with new deal

Aergen refinanced its 2016 securitisation, adding additional aircraft, sources say.

Aergen has added 11 aircraft to the new deal HAIL 2017-1 and upsized its inaugural 2016 transaction by $250 million, which still consists of three classes of loans.

The deal priced on 7 November with the $445 million of class A loans carrying a yield of 4.25%, the $68 million of Bs 5.75% and the $63 million Cs 8.25%, two sources say.

HAIL 2017-1 is secured by a total of 30 Airbus A230 Family and 737 Next Generation aircraft, with an weighted average age of 12.3 years and a weighted average lease term of 3.4 years remaining, according to the Kroll Bond Rating Agency pre-sale report published today.

Three A321s, representing about 10.7% of the portfolio's value, will be off-lease on the closing date, according to KBRA. Aergen has identified possible lessees for the three aircraft but the leases are yet to be closed.

"The terms of the transaction required that if an aircraft is not delivered or substituted, there is a mandatory early redemption for the portion of loans allocable to the undelivered aircraft," says KBRA in its report, adding that the agency is confident that Aergen will successfully remarket the aircraft because it is an attractive asset.

Deutsche Bank is sole structuring agent and arranger, with DVB Bank providing the liquidity facility. Dublin-based Aergen will manage the aircraft.

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