SKY Leasing Secures $569 Million in New Notes Financing
SKY Leasing Completes Successful Issuance of Secured Notes
SKY Leasing, a distinguished aviation investment manager, has proudly announced the closure of a significant financial milestone involving secured notes totaling $569.640 million. This issuance was made through SLAM 2024-1 Limited and SLAM 2024-1 LLC, collectively known as SLAM. The funding is poised to play a pivotal role in SLAM's strategy to acquire a portfolio encompassing 22 aircraft from renowned manufacturers Airbus and Boeing, which is estimated to be valued at around $825 million.
Details of the Secured Notes Offering
The expansive offering encapsulated a single series of secured notes: the Series A Notes that amassed $569.540 million, boasting an attractive interest rate of 5.335%. This tranche of financing has been recognized with notable ratings, securing an A2 rating from Moody's Investors Service and an A (sf) from Kroll Bond Rating Agency. These ratings underscore the strength of the offering, complemented by an initial loan-to-value ratio of 69.0% and an expected maturity period stretching up to 7 years.
Distribution and Oversubscription Insights
Matthew Crawford, Co-Chief Investment Officer at SKY, expressed his enthusiasm regarding the overwhelming success of the SLAM portfolio, which received a response from a broad spectrum of global investors, ultimately achieving a remarkable twofold oversubscription. This widespread distribution not only affirms SKY’s capability to curate appealing portfolio structures but also highlights the effectiveness of their debt strategies with considerable input from investors.
Role of SKY in the Transaction
In this noteworthy transaction, SKY aims to leverage proceeds to optimize its existing warehouse debt financing arrangements, signifying a strategic move towards enhancing overall financial agility. The legal groundwork for the transaction was laid out by Vedder Price P.C. for SKY, while Milbank LLP represented the initial purchasers.
Expert Involvement in the Transaction
This transaction saw collaborative efforts from prominent financial institutions, including MUFG and Deutsche Bank acting as joint lead structuring agents and leading bookrunners. Additional support was provided by BofA Securities and another set of distinguished joint bookrunners, including BNP PARIBAS, Citigroup, Fifth Third Securities, Morgan Stanley, PNC Capital Markets LLC, and SOCIETE GENERALE. Natixis significantly contributed as the liquidity facility provider.
About SKY Leasing
SKY Leasing is recognized for its commitment to providing alternative investment management solutions aimed at the aviation sector. With operational offices strategically located in key markets such as Dublin, New York, Miami, and Singapore, SKY harnesses decades of industry expertise to identify and originate unique investment opportunities. Their disciplined investment framework is particularly focused on downside protection and ensuring stable cash flow for stakeholders.
At present, SKY manages 111 aircraft alongside an impressive portfolio valued at $5 billion. The firm’s proactive management approach, coupled with a commitment to delivering high-quality aviation assets, continues to strengthen its position as a reliable investment partner in the global aviation market.
Frequently Asked Questions
What was the total amount raised in the secured notes offering?
The total amount raised in the secured notes offering was $569.640 million.
What are the expectations for the aircraft portfolio acquired from this offer?
The acquired portfolio includes 22 Airbus and Boeing aircraft valued at approximately $825 million, which features a focus on narrowbody and next-generation aircraft.
Who were the main financial institutions involved in this transaction?
Major financial institutions include MUFG, Deutsche Bank, BofA Securities, and several others that participated as joint bookrunners and structuring agents.
What is the significance of the Series A Notes rating?
The Series A Notes received an A2 rating from Moody's and an A (sf) rating from Kroll, indicating a strong investment quality with favorable terms for investors.
How does SKY Leasing intend to utilize the proceeds from this financing?
SKY Leasing is looking to refinance its existing warehouse debt financing facility with a portion of the proceeds generated from the SLAM transaction.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.