Irish-based Apollo Aviation to get $640m securitising 35 aircraft

Aircraft finance specialist to manage and service transaction through subsidiary

The 35 aircraft  Apollo Aviation is securitising   are leased to carriers such as American Airlines, Virgin and Viva Aerobús. Photograph: Mike Fuentes/Bloomberg

The 35 aircraft Apollo Aviation is securitising are leased to carriers such as American Airlines, Virgin and Viva Aerobús. Photograph: Mike Fuentes/Bloomberg

 

Irish-based aircraft finance specialist Apollo Aviation will realise $640 million from the securitisation of 35 aircraft leased to carriers such as American Airlines, Virgin and Viva Aerobús.

The aircraft lessor, with offices in Dublin, Miami and Singapore, is establishing Apollo Aviation Securitisation Equity Trust 2016-2, which will borrow $640 million to buy 35 craft from the company and a number of third parties.

It will borrow the cash in a series of tranches and secure it against the aircraft, which will remain on lease to their airlines. The company will manage and service the transaction through a subsidiary, Apollo Aviation Management.

Aircraft lessors frequently securitise their craft by transferring them to special-purpose vehicles that raise the money to buy the aircraft from the capital markets. The exercise allows lessors to cash in on their assets.

Third securitisation

Apollo’s latest deal is the second securitisation that it will have completed this year and the third overall since it was founded in 2002. The craft involved are a mix of Boeing and Airbus manufactured aircraft that are used mainly for short-haul flights.

The carriers to which they are leased include American Airlines, Virgin America, India’s SpiceJet, Air Berlin and Mexico’s Viva Aerobús, the company in which Irish businessman Declan Ryan’s Irlandia Aviation is selling its 49 per cent stake.

Standard & Poors and Kroll are expected to give the loans taken out by the securitisation ratings between A and BBB, implying a low risk of default.

Apollo’s chairman, William Hoffman, said the company was continuing to build on its position as a premier aviation asset manager.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.