Vx Capital Partners has priced the first all-freighter securitisation, raising $189 million to purchase 35 aircraft.
The three-tranche loan format deal priced on 20 November with the $138.5 million A loans carrying a 5.438% coupon, the $35.5 million B loans 6.535% and the $15 million C loans 8.474%, Bloomberg data shows. The tranches are rated “A”, “BBB” and “BB” by Kroll Bond Rating Agency (KBRA).
BNP Paribas is lead manager, while DVB Bank and NordLB are co-managers. The transaction is expected to close on 4 December, Bloomberg shows.
Proceeds from the loans will be used to purchase 35 cargo aircraft, including two Boeing 737-300SFs and 33 737-400SFs on lease to 12 lessees in 10 countries, a KBRA pre-sale report says.
Approximately 9.5% of the portfolio is not yet leased, with two aircraft each subject to LOIs and one aircraft currently being marketed. The portfolio has a weighted average remaining lease term of approximately 4.3 years as of 26 October.
Founded in 2002, San Francisco-based Vx Capital was a passenger aircraft lessor until 2014 when the company changed its strategy to leasing narrowbody freighters. In 2016, the company launched a fund to build a portfolio of such jets.
As of October 2018, the company owned and managed a portfolio of 44 freighters, including aircraft under purchase agreements.
Source: Cirium Dashboard