Milbank LLP represented Kennedy Lewis Investment Management (“Kennedy Lewis”) in its strategic partnership with Arena Aviation Capital (“Arena Aviation”) to launch a $1.5 billion aircraft leasing platform called KLA Aviation Finance (“KLA”). The platform will pursue acquisitions of modern technology commercial aircraft assets leased to global airlines, with an initial focus on young and new narrow-body aircraft. Kennedy Lewis will provide equity financing to capitalize KLA, and Arena Aviation will source exclusive transactions for the platform and provide a full suite of lease servicing and asset management services. The partnership is expected to be beneficial to airlines and lessors by helping alleviate liquidity issues caused by the COVID-19 global pandemic.
Kennedy Lewis is an opportunistic credit manager founded in 2017. The company pursues event-driven situations in which a catalyst may unlock value and focuses primarily on corporate and structured credit opportunities in North America and Europe.
Arena Aviation is a full-service aircraft investment management company focusing on the complete life cycle of acquiring and leasing used commercial aviation assets, servicing investment and airline customers worldwide and providing services, including the origination, financing, risk management and administration (finance/accounting and legal) of commercial aviation assets. Arena also provides pre-packaged, tailor-made solutions for airline customers for their mid- and end-of-life assets. Arena today manages 52 aircraft leased to 23 airline customers in Europe, North America, Africa and Asia.
The Milbank team was led by Transportation and Space Practice Group Leader and Global Finance Practice Chair Drew Fine and Transportation and Space partner Freyda Mechlowicz as well as associates Zachary Cronin and Alyssa Julian, along with Tax partner Andrew Walker.
