Notes issued in two tranches supports acquisition of 24 aircraft currently leased in 18 countries from Bank of China Aviation leasing Unit
Playing a major role in a historic aircraft-backed securitization deal, Milbank, Tweed, Hadley & McCloy LLP has advised international underwriters in the issuance of more than $807.9 million of notes by Shenton Aircraft Investment I Ltd. (SAIL). The transaction, backed by 24 aircraft to be acquired from BOC Aviation Pte. Ltd (BOC Aviation), is the first aircraft-backed securitization in Asia, and the first for BOC Aviation.
Milbank advised the underwriters’ deal team, acting on behalf of Citibank, Goldman Sachs, Bank of China International, Deutsche Bank, BNP Paribas, and Morgan Stanley.
BOC Aviation sold a total of 24 aircraft, made by Airbus, Boeing, and Embraer, to SAIL. To finance a portion of the purchase, SAIL issued $747.4 million in 4.75% Series A notes and $60.5 million of 5.75% Series B notes.
“We’re happy to have advised on the first-ever aircraft ABS offering in Asia, led by one of the region’s leading aviation lessors,” said Drew Fine, Head of Milbank’s Transportation and Space Group. “This was a terrific deal involving a portfolio of jets flying worldwide on lease to 21 airlines.”
He continued: “BOC Aviation experienced a successful first foray into aircraft-backed securities with a portfolio that is representative of its fleet. This transaction is an excellent showcase for our global aviation finance group.”
The Milbank team included Transportation and Space partners Drew Fine and James Pascale and associates Min Heo, Jasmine Jin, Freyda Mechlowicz and Alessandra Tarcher; Securities partners Arnie Peinado and Brett Nadritch and associates John Ablan, Alex Gefter and Conor Colasurdo; Tax partner Andrew Walker and special counsel Eschi Rahimi-Laridjani.
