12 Nov 2018

Irish Aircraft Leasing Newsletter 12 November

Apollo Aviation Prices AASET 2018-2 Trust Apollo Aviation announced 1^st November the prices AASET 2018-2 Trust' November 1, 2018 priced its sixth aircraft portfolio transaction: AASET 2018-2 Trust (“AASET 2018-2”). AASET 2018-2 will issue $613.140 million of Secured Notes that will be used to acquire a fleet of 35 aircraft. CDB Aviation Names Nick Hazeldine Chief Operating Officer CDB Aviation announced 29 October the appointment of Nick Hazeldine as the company’s Chief Operating Officer. Nick will begin his role in November 2018 and will be based in CDB Aviation’s recently opened global headquarters in Dublin. CDB Aviation and SpiceJet Sign Lease Agreement for Three 737 MAX Aircraft CDB Aviation announced 6 November that the company signed an agreement with India’s low-cost carrier SpiceJet for the long-term lease of three Boeing 737 MAX 8 aircraft. “We are pleased to forge this new agreement with SpiceJet for an additional three 737 MAX aircraft, which will help the airline expand and standardize its fleet,” said CDB Aviation Chief Commercial Officer Patrick Hannigan. “This efficient jet will support the carrier’s ongoing efforts to achieve a significant reduction in maintenance costs and enhance its domestic and international connectivity.” Michael Lee joins FPG Amentum as SVP Investor Markets FPG Amentum announced 1 November that Michael Lee has joined its team as SVP Investor Markets, with overall responsibility for developing investor solutions and relationships. ORIX Acquires 30% Stake In Avolon With An Enterprise Value Of US$23.7bn Avolon announced 5 November that ORIX Corporation, through its wholly owned subsidiary ORIX Aviation Systems, has completed the acquisition of a 30% stake in Avolon from Bohai Capital for US$2.2 billion, based on a 31 March 2018 NAV. The addition of ORIX, an investment grade institution, diversifies and strengthens the financial profile of Avolon's shareholder base and facilitates positive credit rating momentum. Additionally, the new governance structure enhances protections for minority shareholder and debt investors. Sirius Aircraft Leasing Fund targets mid November 2018 initial placing and offer Sirius Aircraft Leasing Fund (SALF) is targeting a raise US$250 million via an initial placing and offer for subscription, according to its recently published prospectus outlining the raise and the proposed admission of its ordinary shares to trading on the London Stock Exchange. SALF will invest the funds in used aircraft. Additionally, a further 300 million ordinary shares and/or C shares will also be launched on a 12-month placing program following the issuance. SMBC Aviation eyes opportunities as airlines come under stress Airline profitability is coming under pressure, opening up opportunities for aircraft leasing companies, according to SMBC Aviation Capital. "Fuel prices are higher, interest rates are higher, [exchanges rates] are more volatile," Peter Barrett, SMBC chief executive, told the Nikkei Asian Review in a recent interview. "Airlines are going to be less profitable probably and going to face some challenges ... But I think we are very well-positioned to both manage the challenges that might come and also take advantage of any opportunities that [this] will bring up." Acumen Aviation © 12 November 2018 All Rights Reserved.