Griffin Global Asset Management Achieves Groundbreaking Milestone
Griffin Global Asset Management, a leader in commercial aircraft leasing, has successfully closed the inaugural issuance of a substantial $1.245 billion in Fixed Rate Notes associated with their newly established Mid-Life Aircraft Master Trust Platform. This impressive achievement not only showcases Griffin's position in the market but also highlights the company's strategic vision and commitment to advancing aviation finance.
The Composition of the Series 2025-1 Notes
The Fixed Rate Notes, labeled as the Series 2025-1, consist of two primary components. The first component is $1.12 billion in Class A Fixed Rate Notes with an attractive 5.923% interest rate, while the second comprises $125 million of Class Y Fixed Rate Notes, which carry a higher rate of 9.702%. These notes have received ratings of A- (sf) and BB- (sf) respectively from Fitch, ensuring they meet the investment-grade criteria for a substantial audience.
Initial Portfolio Overview
The portfolio linked to these notes is quite remarkable. The initial aircraft that GGAM Master Trust aims to acquire boasts an appraised value of $1.44 billion. It includes a diverse array of 25 narrowbody and widebody aircraft, characterized by an average age of just 4.1 years. These planes are currently leased to 19 different airlines operating across 15 nations, demonstrating a well-distributed investment profile. Griffin stands ready to manage this initial portfolio as well as any additional aircraft purchases.
Insights from Griffin's Leadership
Ryan McKenna, the CEO of Griffin Global Asset Management, expresses immense pride in this significant transaction. He stated, "This milestone transaction represents the largest issuance ever recorded in the aircraft ABS markets. The Griffin Master Trust sets a revolutionary benchmark in aviation finance for mid-life aircraft, allowing us to create a flexible funding structure that scales seamlessly with ongoing acquisitions while aligning aircraft depreciation with debt securities amortization. This initiative is a key component of our financing strategy, and our goal is to develop the Master Trust into the most extensive and diversified ABS platform in the aviation sector." McKenna also highlighted the diligent efforts of his team and the valued partnerships with financial and legal advisors, which played a crucial role in developing this innovative funding model.
Collaborative Partners in this Initiative
The successful closing of this transaction was made possible due to the concerted efforts of numerous financial institutions. Mizuho Securities and Bank of America served as Joint Structuring Agents and Bookrunners for the issuance. Meanwhile, Citigroup, Goldman Sachs & Co. LLC, and Morgan Stanley took on roles as Passive Bookrunners. Additionally, various financial entities such as Barclays, BMO Capital Markets, Fifth Third Securities, and others participated as Co-Managers.
Legal and Tax Advisory Team
Legal responsibilities were handled by distinguished firms, with Hughes Hubbard & Reed LLP representing Griffin and GGAM Master Trust, while Milbank LLP provided counsel to the Initial Purchasers and agents involved in the issuance. KPMG Ireland facilitated tax advisory services, ensuring adherence to regulatory standards.
Understanding the Regulatory Landscape
It's important to note that the Initial Notes have not been registered under the Securities Act of 1933 or any equivalent securities laws, thus cannot be offered or sold within the United States with certain exceptions. This regulatory aspect aligns with Griffin's commitment to compliance while pursuing innovative financial strategies.
About Griffin Global Asset Management
Griffin Global Asset Management operates as a pivotal player in both aircraft leasing and alternative asset management. With its headquarters situated in Dublin and additional offices in Tokyo, Singapore, Puerto Rico, and Los Angeles, Griffin is uniquely positioned to collaborate closely with airlines, aircraft manufacturers, maintenance providers, and financial institutions. The team at Griffin delivers tailored capital solutions to a global clientele, reflecting the company's deep-rooted commitment to innovation in aviation finance.
Frequently Asked Questions
What is the significance of Griffin's $1.245 billion issuance?
This issuance represents a significant milestone in the aircraft ABS markets and showcases Griffin's leadership in innovative aviation finance.
What types of aircraft are included in the initial portfolio?
The initial portfolio includes 25 narrowbody and widebody aircraft, with an average age of just 4.1 years, leased to various airlines globally.
Who were the main advisors involved in this issuance?
Mizuho Securities, Bank of America, Hughes Hubbard & Reed LLP, and Milbank LLP were among the key advisors assisting in this complex transaction.
How is Griffin Global Asset Management positioned in the aviation market?
Griffin is a leading commercial aircraft leasing company, providing innovative capital solutions globally in partnership with airlines and financial institutions.
What is the role of Ryan McKenna in this announcement?
Ryan McKenna, as CEO, articulated the strategic importance of this issuance and the future ambitions of Griffin's Master Trust in aviation finance.
