Private investment group Floreat has invested in Air Lease Corporation’s (ALC) new asset-backed securitisation (ABS).Known as Thunderbolt III, the newly-formed entity (Thunderbolt III Aircraft Lease Limited) will purchase a portfolio of 19 commercial aircraft on operating lease to 18 airlines in 15 countries. The airlines are diversified globally and over half are national flag carriers. Names include Vueling, Air France, China Airlines and Aerolineas Argentinas.
The structure includes two series of fixed rate notes and equity certificates. Floreat is the largest single investor in the equity certificates, with USD25 million invested.
Floreat invested following a robust review and analysis of the transaction. Mizuho Securities USA LLC acted as global coordinator and a joint lead structuring agent and bookrunner.
Floreat is committed to further building its presence in the aviation market, offering products to their institutional and private clients. Since their first aviation-backed transaction in 2016, the group continues to build its offering, aiming to take advantage of the long-term demand prospects of the sector.
Mark Rogers, Managing Director at Floreat, says: ‘We are very pleased to have deployed a significant amount of capital into the equity certificates of Thunderbolt. Air Lease Corporation is one of the leading global aircraft lessors and we undertook a detailed analysis of the portfolio to ensure that the transaction met our stringent investment underwriting requirements. We continue to see attractive investment opportunities in the aircraft leasing asset class, particularly in ABS transactions, and will be deploying further capital into such structures.’
Greg Willis, CFO of Air Lease Corporation, says: ‘ALC would like to thank Floreat for their support of Thunderbolt III. It was a pleasure to work with the Floreat team and, given Floreat’s aspiration to continue investment into this sector, we look forward to working with them again’
