Guide to aviation lawyers 2020 - An Airfinance Journal special supplement - Bird & Bird
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Legal survey 2020
An Airfinance Journal
special supplement
Guide to aviation
lawyers 2020
www.airfinancejournal.com 41
Legal moves 2019/20
Legal moves 2019-20
Edwards joins CMS but specialising in asset finance, project
finance and structured finance transactions
Catanzariti joined the firm in 2009 and
specialises in asset and structured finance,
and, in particular, shipping and aviation with a strong focus on the aviation sector.
as partner finance, with a focus on aircraft asset- He advises Australian and international
based securities transactions. banks, lenders, borrowers, lessees, lessors
His appointment comes during a time and arrangers, and was listed as a senior
of growth for the firm and follows a large associate.
number of strategic appointments across
its corporate and litigation practices.
Finnigan joins a team with experience
in a wide range of corporate and finance
matters, including asset and structured
finance and fund finance transactions.
Gwen Edwards
Steven Catanzariti
C MS Cameron McKenna Nabarro
Olswang has appointed Gwen
Edwards as a partner in the firm’s asset
finance team, based in London.
Edwards joins from Hogan Lovells, where
Hogan Lovells
she was in the asset finance team.
She has more than 10 years’ experience
appoints Cevher
in asset finance with a specialism in aircraft
debt finance and leasing. This experience
Conti
includes advising banks, operating lessors,
borrowers, airlines, rail and shipping
companies and private equity firms on
M ehtap Cevher Conti has joined law
firm Hogan Lovells as a partner in
the New York office. She was previously a
cross-border asset finance transactions, tax- partner at Arnold & Porter for two years.
based structured finance and restructuring Before that, she was in private
and other general banking work. Barnabas Finnigan
practice, where she focused on global
Her appointment bolsters the firm’s new transportation finance. Cevher Conti has
aviation team: Legal Flightpath – CMS Before joining Maples Group, Finnigan more than 15 years’ experience in finance,
Aviation. worked in the shipping finance team at particularly in aviation finance. Her broad
This team comprises more than 70 Norton Rose for almost four years. He range of experience includes secured
partners, providing solutions for airlines, started his career at Eversheds before debt and export credit agency-supported
airport operators and service providers, joining Richards Butler (now Reed Smith) in transactions, revolving credit facilities,
air traffic control operators, banks, aircraft London. leveraged leases, operating leases,
lessors, equipment manufacturers, aircraft portfolio acquisitions, and asset-backed
maintenance services and aviation structured financings and securitisations
technology businesses.
Herbert Smith for commercial and investment banks,
insurance companies, financial institutions,
aircraft operating lessors and airlines.
Freehills promotes
Finnigan moves to Cevher Conti’s work in the commercial
airline space includes secured debt, export
Catanzariti credit agency-supported transactions, sale
Conyers and leaseback transactions and aircraft
C onyers continues the expansion of its
Cayman Islands corporate practice with
H erbert Smith Freehills has promoted
Steven Catanzariti to partner within
its aviation finance team. Catanzariti
portfolio acquisitions.
Matthew Cottis, global head of the
finance practice at Hogan Lovells, says the
the hire of Barnabas Finnigan as counsel. joins John Angus in Australia, and Siva firm has been looking to expand its finance
Finnigan arrives from Maples Group where Subramaniam, Samuel Kolehmainen, Rex capabilities. He says: “We expect that she
he worked for more than eight years as an Rosales and Jahnavi Ramachandran in will work closely with our capital markets
associate in the Cayman Islands advising London in supporting the firm’s aviation team in New York, as well as with our
on all aspects of Cayman Islands law, finance clients. strong asset finance team in London.”
42 Airfinance Journal July/August 2020
Legal survey 2020
Clifford Chance retains crown
Airfinance Journal had to sift through 1,520 deals to find its 2019 winner, with Clifford
Chance’s Turkish Airlines Balthazar deal scooping the inaugural Legal Transaction of the Year.
A irfinance Journal would like to thank all
the law firms which participated in this
year’s survey.
This year’s survey
highlighted the significant
Complexity:
• Ground-breaking pioneer transaction:
10 points
Airfinance Journal’s annual legal
survey includes aviation finance deals
increase in the capital • Complex transaction, some new parties
based on submissions from law firms as markets’ activity. In or jurisdictions: 7 points
well as Airfinance Journal’s Deal Tracker • Average complexity, repeat transaction
transactions. Those are subsequently 2019, Airfinance Journal with same players and jurisdictions: 5
aggregated to create the winners. This year,
we received submissions from 15 firms,
recorded 179 eligible points
compiling 1,520 deals overall, including transactions compared • Less-complex transaction: 3 points
transactions gathered from Deal Tracker. • Low complexity: 1 point
This is the fourth year Airfinance Journal with 116 the previous year.
has used data transactions from Deal Tracker
for our legal survey. It provides a more Role:
accurate picture of the 2019 activity because
it includes law firms, which were not able to • Drafting counsel for major transaction
submit or decided not to submit. The firms product type. The legal survey reviews documents: 10 points
that did submit have the most accurate transactions for calendar year 2019 only. • Primary counsel to major transaction
representation of their deals in 2019. This is significant because we recognise parties: 7 points
This year’s survey highlighted the that markets change, as do law firms;
significant increase in the capital markets’ however, we felt this was the only way • Secondary counsel to transaction
activity. In 2019, Airfinance Journal to offer an accurate snapshot of aviation parties: 3 points
recorded 179 eligible transactions finance legal activity.
compared with 116 the previous year. Our aim is to continue being transparent For all Deal Tracker transactions that
The survey also highlighted more activity and impartial. All of the deals used to judge were not part of the submitted deals,
in the export credit agencies sector. Export the winners are eventually loaded into Airfinance Journal assigned one point
credit agency-backed structures have Deal Tracker and can be reviewed by our for the complexity of a transaction and
been becoming scarce as a consequence readers. three points for the role played by the
of continued liquidity in the air finance In this sense, our survey is unique. Our law firm. This resulted in a total score of
sector. As a consequence, there were researchers assess each deal to verify four that was assigned to all Deal Tracker
fewer transactions in the commercial loan them and to avoid double counting. The transactions that were not part of the
market in 2019 than in 2018. benefit of using Deal Tracker is that we can submitted deals.
Today, 37% of the submitted deals offer a granular presentation of law firm
originate with European customers versus activity by both product type and region. Overall rankings
40% in the 2016 legal survey. Europe still There are limitations to the survey. Like previous years, the survey records the
represents 562 transaction points. Client confidentiality may be an issue overall number of deals for each law firm. A
Asia-Pacific is the second region with for law firms when submitting deals and deal, as defined by the survey, represents
410 transactions, or 27%. North America some firms opted not to participate. As one mandate and can include multiple
remains third by region with about the a consequence, the survey does not aircraft and law firms.
same percentage of transactions as in 2018 represent all of the deals happening In addition to presenting the most
(21%, or 320 transactions). in the market, but it remains the most active law firms by product and region, the
Activity in Latin America has slightly comprehensive survey of its type and survey also aggregates how law firms have
decreased over the past three years. Some crucially offers a real insight into the performed to produce an overall ranking.
5.3% of this year’s total involves clients aviation market.
from that region, against 6% two years The survey gives a strong indication Overall winners
ago. The activity in Africa remains at the of which law firms are most favoured for Clifford Chance secured the number one
previous year’s level, while transactions in certain deal types and for certain regions. spot among the law firms and topped
the Middle East are slightly lower than the Airfinance Journal continues to listen the Asia-Pacific, Europe, Middle East,
previous year. to its audience. This year we modified the commercial loans, operating lease, and
evaluation criteria to reflect the transaction guaranteed financing categories.
Methodology complexity as well as the law firm’s role in Like in 2018, K&L Gates and Milbank
Aviation law firms were invited to submit a transaction rather than simply count the completed the podium, with Milbank
deals to be included in Deal Tracker. The number of deals. being the law firm which progressed the
Airfinance Journal data team then reviews As a result, law firms were asked to self- most year-on-year. Pillsbury pipped White
the different deals and selects those assess the complexity of each transaction & Case for the fourth spot. Bird & Bird
eligible for Deal Tracker. This list is then and their role in the transaction according remained sixth in the overall rankings,
used to select the most active law firms, to the following new set of criteria for which while Stephenson Harwood was the most
which are then selected by region and the specified points were awarded: improved law firm outside the top six.
www.airfinancejournal.com 43
Legal survey 2020
Legal Transaction of the Year: Turkish Airlines’ 5xA321neo
Balthazar-guaranteed commercial financing
A irfinance Journal also introduced the
Legal Transaction of the Year award,
to recognise the strongest deal in the
provided by BNP Paribas, utilising a French
structured tax lease. Four further A321neo
aircraft were financed during the course
the Capital Requirements Regulation/
Capital Requirements Directive package,
as an alternative product to export
commercial aviation finance market. of the year as part of this transaction. The credit agency support for similar aircraft
Law firms were invited to submit one lenders have the benefit of a bespoke financings. Clifford Chance acted as
nomination for consideration in terms of Balthazar credit risk insurance (CRI) policy, advisers to the insurers on all five
complexity, timing, innovation, overcoming arranged by Marsh (Paris) as a broker, and deliveries and drafted the underlying
obstacles and diversity of solutions. provided by a syndicate of leading insurers, Balthazar policy to be used for all such
The editorial team selected Turkish for repayment of the loan on a credit risk supported financings going forward. The
Airlines Balthazar-guaranteed financing as default of the airline. deal team spent more than a year working
the winning submission. Clifford Chance Key features of the policy include closely with Airbus, selected banks and
was involved in another first in the aviation 100% cover, negotiated exclusions and a the Balthazar underwriting committee in
industry space, with the successful closing framework, which balances the regulatory developing the policy framework and was
of a new credit risk insurance product for capital standards of aviation financiers with the sole law firm involved in this process.
Airbus aircraft financings. the risk profile of the CRI market. Clyde & Co acted as the borrower
The first of five Airbus A320neo-family Notably, the policy has been prepared counsel, Norton Rose Fulbright was the
aircraft, an A321neo, closed in February to take account of EU financial institutions’ lender counsel while Morris James was the
2019 to Turkish Airlines, with financing credit risk mitigation requirements under security trustee counsel in the transaction.
Top 10 law firms by number of deals
197
Total number of eligible deals 1,520
● Score ● Number of deals
113
107
83
83
2,353
1,472
1,345
1,176 43
1,082 31
19
19 47
473
436
309
237 188
Clifford K&L Gates Milbank Pillsbury White & Case Bird & Bird Stephenson Winston Freshfields Vedder Price
Chance Harwood & Strawn
Source: law firm submissions and AFJ Deal Tracker
44 Airfinance Journal July/August 2020
Legal survey 2020
Asia-Pacific
49
48
Total number of eligible deals 410
K &L Gates closed the gap on Clifford
Chance last year in the Asia-Pacific
region but Clifford Chance ranked first with
● Score ● Number of deals
a larger overall score.
688 19
Clifford Chance was particularly involved 598 20
in lessors’ commercial loan transactions in 16
this market.
Simon Briscoe, a partner at the law 279 253 216
firm, says the downward pressure on the
commercial debt market continued in 2019,
but the competitive market for assets for Clifford Chance K&L Gates White & Case Bird & Bird Milbank
Jol investors was relatively unabated. Source: law firm submissions and AFJ Deal Tracker
“The year just gone had seen a continuing
swing to the operating lessor market to
meet the capital funding requirement arising Asia-Pacific. “Carriers who otherwise were operating leases, retrenching of aircraft
from the growth of the Asian carriers. In turn, doing fine before Covid-19, but who are back to the home jurisdiction (Lion Air) or
those lessors had turned in ever-increasing now facing insolvency are of keen interest grounding particular sections of their fleet
numbers to the international capital markets, to private equity funds,” he comments. (every airline).
both the secured ABS [asset-backed Melson observes that the number “Depending upon their pre Covid-19
securities] market and the unsecured bond of structured leases in the Asia-Pacific routes, some airlines will be able to
market, to meet their capital requirements,” has decreased dramatically, as debt recommence flights within their domestic
says Briscoe. and equity are staying on the sidelines markets to ensure they are able to have
The firm was involved in the $300 million until the winners and losers among aircraft in operation (Australia, People’s
Ortus Aircraft Leasing II Fund, Novus airlines are determined. “In some cases, Republic of China, India, Indonesia
Aviation Capital’s second fund which that determination is being made by and Vietnam). However, for those that
was the largest equity commitment for a governments who provide bailouts for one rely significantly on international travel
Japanese-funded aircraft leasing fund last or two of their country-based carriers, but (Singapore Airlines and Cathay Pacific
year. This was one of the fastest-closing not all of them,” adds Melson. Airways), then it is going to be important
funds that Sumitomo Mitsui Trust Bank had James Bradley, a partner at K&L Gates, that the green corridors arrangements are
sponsored and invested in as a limited says Asian airlines were the first to be hit by put in place quickly.
partner across asset classes. the impact of Covid-19 and, as such, were “It is clear that a multijurisdictional
K&L Gates’ global head of aviation, among the first to start putting contingency approach with the support of governments
Robert Melson, observes that private plans in place whether that be voluntary and international organisations is required
equity funds have been actively looking administration (Virgin Australia and Thai in order to expedite the recovery of the
at opportunities for airline investments in Airways), managed early terminations of airlines in this region,” he adds.
Africa 4
6
Total number of eligible deals 55
T he African market recorded a similar
level of activity in 2019 as in 2018, with
55 deals. 3
● Score ● Number of deals
K&L Gates topped the rankings followed 69 2
by Clifford Chance and Pillsbury. The US- 64
based law firm closed four transactions last 1
41
year and scored 69 points. 30
K&L Gates was particularly involved 17
in the financing closed by Royal Air
Maroc (RAM), which was a new Japanese K&L Gates Clifford Chance Pillsbury White & Case Hogan Lovells
operating lease with call option (Jolco)
Source: law firm submissions and AFJ Deal Tracker
name within the African market. K&L Gates
represented the Japanese equity in the first
Jolco to RAM’s Boeing 737 Max delivery. there is considerable appetite for Japanese 737 Max delivery. Ethiopian Airlines was
“Year on year, the Jolco market continues equity in the North African market, as well a big issuer of debt in 2019 in Africa and
to evolve as lenders and lessors welcome as for airlines from the region to explore financed several Airbus A350 deliveries
new airlines from fresh jurisdictions. RAM new financing structures,” says Misha through the Jolco and the export credit
are the second African-based airline to Kovacevic, counsel at K&L Gates. market.
utilise the Jolco structure,” says K&L Gates RAM was a big issuer in Africa last year. Air Mauritius also financed a pair of
partner Amanda Darling. Its activity was on the back of using Aircraft A350-900s through the Jolco market.
The firm also advised a different Finance Insurance Consortium (AFIC)- Tunisair financed an ATR72-600 delivery
Japanese lessor on a Japanese operating supported financing structures for the first in the structured operating lease market
lease (Jol) sale/leaseback transaction for time in 2018. through an Ijarah lease.
four 737-800 aircraft with RAM, two of In 2019, the carrier returned to this Operating leases were the bulk of
which were closed without debt financing. market through a French tax lease with the activity in the region in 2019 with an
“The volume of transactions indicate that AFIC financing for three 787-9s and a estimated 33 transaction points.
www.airfinancejournal.com 45
Legal survey 2020
Europe
77
Total number of eligible deals 562
S ome 37% of the submitted deals
originate with European customers but
its share has slightly reduced. In the 2016 34
● Score ● Number of deals
legal survey, Europe accounted for 40% of 922 30 37
the deals. 21
Europe still represents 562 transaction
456
points, up from 539 eligible deals 373 346 268
submitted in 2018.
Commercial loans account for 84 Clifford Chance K&L Gates White & Case Milbank Pillsbury
transaction points, of which 70 are secured.
Among the unsecured activity in 2019, Source: law firm submissions and AFJ Deal Tracker
operating lessors represented more than
half of the transactions with notably Aercap, This private placement was a further step “Twenty-nineteen was a challenging
Goshawk, Nordic Aviation Capital and for NAC to migrate to unsecured financing. year for the European airline market, one
SMBC Aviation Capital issuing debt. The lessor returned to the private which saw further consolidation – whether
The lessor companies continued to tap placement market this year with an $858 consolidation by elimination (several
the capital markets, as a way of financing million issuance, again being the largest airlines failed in 2019, including Thomas
their growth, using the unsecured market private placement issue by an aircraft Cook Airlines, Germania, Wow Air and Aigle
in 2019. lessor in the history of the market. Azur), or active M&A activity (including IAG’s
Some, such as Nordic Aviation Capital Clifford Chance acted as counsel for the proposed acquisition of Air Europa),” says
(NAC), issued debt in the private placement Danish aircraft lessor. The firm came first Clifford Chance partner Oliver Hipperson.
market. with 77 transactions in 2019 with a score “Last year also saw the implementation of
In March 2019, NAC sold a $786.3 million of 922 points, followed by K&L Gates (34 the first step of the United Nation’s CORSIA
US private placement with Citi, Deutsche transactions and 456 points) and White & scheme, which aims to make all growth
Bank, Goldman Sachs and RBC Capital Case (30 transactions and 373 score). in international flights after 2020 carbon
Markets, which the borrower claimed was The predominant structure in Europe neutral (though the scheme remains optional
the largest senior unsecured US private continues to be operating leases with currently)”, he adds. In a similar vein, the
placement ever issued by an aircraft 279 transaction points last year, or just flygskam movement continued to gather
leasing company. The issuance launched under 50% of all structures. The number of momentum, which – together with the various
at $250 million and was substantially operating leases also reflects the changes airline failures – may have contributed to
oversubscribed, allowing NAC to raise in European carrier fleets after some 2019 seeing the lowest European seat
$786.3 million. ceased operations. growth numbers since 2013.”
Middle East
21
Total number of eligible deals 92
C lifford Chance ranked first in the Middle
East region with 21 transaction points
and a score of 256. K&L Gates came 9 7
● Score ● Number of deals
256
second with nine transactions and 130 6
points, closely followed by Milbank with 9
seven transactions and a score of 124. 130 124
100
“The Middle East remains an important 73
region for the global aviation industry. Over
2019, we saw continued growth from the Clifford Chance K&L Gates Milbank Pillsbury Bird & Bird
major players in the region, as well as an
Source: law firm submissions and AFJ Deal Tracker
increase in funds activity and establishment
of new leasing companies on the ground,”
says Clifford Chance partner Antony Single. One of the main transactions in the avenues to increase their liquidity. We have
“As with the rest of the world, Covid-19 Middle East was Aercap’s sale of a second- acted for lessors assisting the airlines with
is having an impact on the Middle East, but hand aircraft portfolio to NCB Capital. sale and leaseback transactions to increase
we are starting to see some green shoots The innovative Shariah-compliant $500 their liquidity,” says Rajagopal.
in the recovery. The Middle East continues million five-year portfolio financing for Dara Capital market deals accounted for five
to see a wide mix of different financing Aviation Finance involved both Clifford transactions with the notable DAE Capital
and leasing structures but we have seen Chance and Milbank as law firms. sponsoring Falcon 2019-1 ABS transaction.
a definite increase in the structuring of Milbank was again active with another Commercial loan structures were popular
transactions through the DIFC and ADGM groundbreaking transaction in the region in the Middle East in 2019 notably with
on both UAE and also regional transactions. – the AFIC-supported financings for El Al leasing companies. The 17 transaction
We have also seen some exciting initiatives Israeli Airlines with Japanese equity. points included Alafco raising more than
in the green and sustainable development K&L Gates’ partner Sidanth Rajagopal says $1.5 billion through the Murabaha financing
goals space with Etihad Airways becoming the region has been one of the hardest-hit structure. DAE Capital raised $600 million
the first airline to raise funds tied to United areas, because the entire aviation model through the commercial loan market and
Nations sustainable development goals,” was based on a hub-and-spoke model. also amended its revolving credit facilities
he adds. “This has led to most airlines looking for during the year.
46 Airfinance Journal July/August 2020
Legal survey 2020
www.airfinancejournal.com 47
Legal survey 2020
Latin America 9
Total number of eligible deals 81
F our law firms were very active in the
Latin America market and, based on
Airfinance Journal’s newly introduced
9
8
● Score ● Number of deals
points system recognising the role and 146 10
complexity of transaction, Winston & Strawn
ranked first, followed by Milbank and White 101
& Case. 5
87
76
Mark Moody of Winston & Strawn notes
that airlines in Latin America continued to
46
attract diverse sources of financings last
year, with Jolcos, in particular, being very
prevalent for some of the leading airlines in
the region. Winston & Strawn Milbank White & Case Clifford Chance Pillsbury
The data shows that almost $1.5 billion- Source: law firm submissions and AFJ Deal Tracker
worth of Jolco transactions closed last year
with Latin American carriers, notably Copa its $550 million 8.375% senior unsecured airlines acquired about 20 aircraft under
Airlines and LATAM Airlines. notes due in May 2020 for new senior purchase contracts.
The assets financed include 737 Max 9 secured notes due 2023, and a $325 Capital markets activity included 11
aircraft, A320neo and 787-9s. But LATAM million convertible term loan facility transactions with Avianca and Volaris
also managed to refinance six used A320s provided by United Airlines, Kingsland issuing secured notes. LATAM Airlines, Viva
in the Jolco market in a $224 million International Group and certain Latin Aerobus, Azul, Gol and Avianca issued
transaction. American investors. unsecured bonds.
Winston & Strawn was involved in three The firm also represented Brazilian Looking ahead, Moody says that,
transactions, representing $939 million. carrier Gol in a spare parts engine because of Covid-19, “2020 is of course
Milbank partner Drew Fine says the firm financing-related transaction, another US a different story, with both Avianca and
was particularly active in Latin America Ex-Im financing and a predelivery financing. LATAM having now filed for Chapter 11
representing Avianca in its debt and Milbank also represented the lenders in in the USA. This will undoubtedly have
lease restructuring transaction. Avianca connection with a US Ex-Im financing for an impact on the availability of future
renegotiated more than $4.5 billion of Aeromexico. financings for airlines in the region, with
aircraft lease, debt and other obligations Operating leases in Latin America such airlines likely having to turn towards
as part of its 2021 strategic plan. The represented about half of the transactions supported financings such as those
transaction included an offer to exchange last year, according to the data, while involving the ECAs”.
North America 38
34
Total number of eligible deals 320
M ilbank and Pillsbury were neck and
neck in North America, representing
more than 70 transactions during 2019, or ● Score ● Number of deals
23% of the overall deals in the market.
“The North American aircraft finance 31
market had another incredible year in 2019.
558
The capital markets were particularly hot,
517 16
with aircraft ABS having another record
14
year and plenty of unsecured offerings
and EETCs [enhanced equipment trust 293
certificates],” says Milbank’s Fine. 204
The abundance of liquidity in the capital 168
markets was translated in a total of 57
transactions last year in North America.
Milbank Pillsbury Clifford Chance White & Case K&L Gates
Airfinance Journal recorded 17 transactions
worth $8.8 billion in 2019 in the ABS market, Source: law firm submissions and AFJ Deal Tracker
up from $7.3 billion the previous year.
There was a vague air of optimism in Also, there was $5.25 billion-worth of acquisition finance facilities. Milbank was
January this year when the commercial EETC issuances in the US market but 2019 delighted to be involved in the vast majority
aircraft ABS market was predicted to also marked a year with many commercial of major US financings in 2019. Overall,
surpass 2019 volumes. Indeed, in the first loan deals in North America. The data shows a banner year in the US aircraft finance
two months of the year, ABS transactions almost 80 transaction points closing in 2019 market,” adds Fine. The structured lease
across five issuances totalled $2.26 billion with the majority being secured transactions. market activity was minimal in North America
– and sources told Airfinance Journal in The lessor community, along with issuing last year with six transactions recorded in
early March that another 10 deals were in unsecured debt, tapped the secured market the Jol market. Aircraft acquisitions and
the pipeline for the first half. However, the through term loans, portfolio finance and portfolio acquisitions represented about
initial momentum has stalled because of the revolving credit facilities. “There were also one-third of the total eligible transactions in
Covid-19 pandemic. plenty of warehouse, term loan and other North America with 118 deals recorded.
48 Airfinance Journal July/August 2020
Legal survey 2020
Capital markets
30
Total number of eligible deals 179
20
N orth America leads with a third of the
capital markets transactions, especially
in the ABS and EETC markets. 424 19
● Score ● Number of deals
Airfinance Journal recorded a total of 21 301
ABS transactions in 2019, 12 of which were 14
182 3
issued by US-based sponsors.
56 51
Milbank’s Fine says: “Following a new
record 15 aircraft ABS transactions closed Milbank Pillsbury Clifford Chance Maples & Calder Para laws
in 2018, a new record 18 aircraft ABS Source: law firm submissions and AFJ Deal Tracker
transactions closed in 2019. This included
11 ABS with 144A “tradeable” equity and the Jetblue Airways, American Airlines, United Overall, a stellar year in the capital markets
first aircraft ABS with Japanese equity. The plus Delta Air Lines, which returned to the in 2019 and Milbank was the market
ABS market continued red-hot with five market after a five-year absence. leader,” says Fine.
aircraft ABS deals closing in January and DAL 2019-1 was a very interesting deal Non-US carrier issuers included two
February 2020 until Covid-19 closed down because both AA and A certificates were members of the IAG group. British Airways
the market.” structured with a five-year bullet maturity. issued a $1.12 billion transaction that
The appetite for the unsecured bond The bullet structure is unusual for an EETC combines senior secured EETCs and
market last year increased with a total of transaction, most of which are amortising Jolco equity in relation to six A350-1000
106 transaction points recorded overall, of structures featuring about 12-year tenors and two A320neo deliveries. Iberia issued
which a quarter was in North America. and approximately nine-year weighted an EETC transaction in the private market
Milbank maintained its lead in the capital average lives for senior tranches. The for two A320neo and two A350-900
markets category. The firm was involved collateral pool included six Airbus A321s, deliveries.
as counsel in 30 transactions, three more two A350-900s, four 737-900ERs and two Another milestone transaction included
than the previous year. Pillsbury was A220-100s, all of which were delivered to American issuing $650 million of debt in
second with 20 transactions in 2019 closely Delta in 2018. the private market secured by 79 engines.
followed by Clifford Chance with 19. “Delta, United, American and Jetblue The transaction represented the first
The EETC market had a better year continued to issue EETCs in 2019, and the broadly distributed private placement
in 2019 than in 2018 with almost $4.6 rated aircraft leasing companies and the engine EETC for the issuer, with 18
billion-worth of transactions. Last year, the major US airlines turned out unsecured investors ultimately participating in the
EETC issuers included US carriers such as note offerings at attractive interest rates. transaction.
Structured leases 40
36
Total number of eligible deals 107
N arrowbodies continue to account for
the bulk of Jolco deals, particularly the
A320neo-family as Boeing’s competing 737 ● Score ● Number of deals
Max series remains grounded. 587 17
The past year has seen a number of 482
12
notable developments in the Jol/Jolco 8
space, including the proliferation of more 255
149
Jolco deals with lessors as a natural 120
adjustment to the shift in aircraft ownership
K&L Gates Clifford Chance White & Case Freshfields Stephenson Harwood
from airlines to lessors. There were also
more refinancings of vintage aircraft and Source: law firm submissions and AFJ Deal Tracker
more innovative debt structures emerging,
combining the traditional Jolco with because there was a moment where supply the Jolco transactions, including many
instruments including ABS, EETCs and exceeded demand. This forced arrangers to that involved new airline credits for the
AFIC-guaranteed debt. sell down their inventories at a discount. We product,” he says. K&L Gates’ Darling
Jolco financings represented about had hoped this would correct itself back but, says the firm was able to guide clients
two-thirds of the structured lease market unfortunately, this does not look to be the through structured lease transactions
last year. The overall funding volumes case for 2020,” Tokyo Century joint general with longstanding counterparties and also
have increased, reflecting the confidence manager and global head of marketing, helped them institute new relationships,
in the product and the credits, but also Marito Takamasa, tells Airfinance Journal. such as welcoming Royal Air Maroc to the
as a consequence of larger transactions K&L Gates maintained its lead position Jolco market.
requiring bigger Japanese equity in this market, although Clifford Chance “Representing Japanese lessors on Jol
underwriting capabilities. significantly reduced the gap. and Jolco structures is an area where the
Last year saw the first Jolco transactions K&L Gates’s Melson says 2019 was a K&L Gates team excel. Our expertise in
for El Al Airlines, Royal Air Maroc, Air big year for the firm. It advised on the structured lease transactions spans the
Mauritius, while LATAM tapped the JOL-Air 2019-1 ABS, the first ABS to feature globe, we establish knowledgeable teams
market for new and used assets, as Jolco securitised debt with equity sourced from across various jurisdictions and time zones
underwriters became more open minded the Jol market. to provide around the clock client care and
on the risk. “In 2019, we’ve seen the market “On the structured lease front, we encourage transaction momentum,” adds
expand, maybe even a bit too much continued to advise on a majority of Darling.
www.airfinancejournal.com 49
Legal survey 2020
Commercial loan 82
Total number of eligible deals 277
T he aircraft commercial loan market has
been resilient in recent years, despite
the abundance of liquidity and structures
that have pushed airlines and lessors to opt
as alternatives.
In recent years and until the Covid-19
crisis, airlines had never had it so good,
as they benefited from aggressive pricing
and a wide appetite for financings from ● Score ● Number of deals
traditional banks, new participants and
banks which re-entered the sector after long 36
absences. 940
Furthermore, new asset financing
structures have been developed over the
past few years, notably the emergence
21 20
of insurance-backed structures that
benefited from the withdrawal of the ECAs. 440
14
At the same time, a growing list of carriers
succeeded in tapping the US capital 244 231
markets for the first time. 173
In 2019, Airfinance Journal recorded 277
eligible deals in the commercial loan market. Clifford Chance Milbank Pillsbury White & Case K&L Gates
However, this was about 100 transactions
down from the previous year and, as Source: law firm submissions and AFJ Deal Tracker
such, the percentage of commercial loans
dropped to 18% of the total transactions from
24% in 2019. Castlelake was particularly active last Solutions, Apollo Navigator, the KKR/Altavair
This pattern can be seen among the year with two transactions: an $835 million joint venture, Airborne/Tailwind, TrueNoord
top three law firms ranked in this category. non-recourse term loan facility to support and the Napier Park/AAR joint venture.
Clifford Chance came first with 82 the acquisition of an aircraft operating lease Milbank’s Fine says the commercial loan
transaction points in 2019 (20 fewer than portfolio of 22 aircraft from CMIG Aviation, market was very strong, whether it involved
the previous year), Milbank was second with and an almost $600 million financing to term loan facilities, revolving credit facilities
36 transactions (10 fewer than in 2019) and purchase a 24 Airbus A320-aircraft portfolio or warehouses.
Pillsbury was third with 21 transactions (11 from Air Aviation Capital. “Large term loan facilities and warehouses
fewer than in 2019). Airborne Capital secured a $693 million were made available with the goal of
Some landmark transactions in 2019 warehouse facility agreement with three eventually being taken out by ABS or long-
included lessors. European lenders. term financing facilities,” he says.
Altavair and KKR secured a $750 million DAE Capital secured a four-year $440 The firm also represented the borrower
blind warehouse facility for their joint million revolving credit facility syndicated in on one of the largest financings of the
venture after KKR invested $1 billion. The the Asia-Pacific region and subscribed by 10 year – a collateralised loan obligation-like
facility has a three-year availability period Asian banks. Milbank worked on warehouse financing of the acquisition by Athene and
and four-year term. financings for, among others, Aerocapital Apollo from GE Capital of PK Airfinance.
Sales & purchases 33 Total number of eligible deals 300
24
30 ● Score ● Number of deals
K &L Gates was the most active law firm
last year in the sale and purchase
market, ahead of Pillsbury and Clifford
23
Chance. The firm racked up 33 transaction
points and scored 408 points.
18
However, there were 300 transactions
recorded last year, or about 45 transactions 408
363 343
less than the previous year. 315
“Aircraft sale transactions continue to
have a bit of a mixed approach from the 207
market but is one area where there will be
a reasonable amount of activity as airlines
will look to access the sale and leaseback
market or sell aircraft (including for part-out)
to increase their cash position,” comments K&L Gates Pillsbury Clifford Chance White & Case Milbank
K&L Gates’ Rajagopal. Source: law firm submissions and AFJ Deal Tracker
50 Airfinance Journal July/August 2020Legal survey 2020
Legal opinion,
clearly expressed
The award-winning Stephenson Harwood aviation
team has expertise across all areas of the aviation
industry, including financing and leasing transactions,
portfolio management activities, aircraft acquisitions
and disposals, and dispute resolution.
Offices | Dubai | Hong Kong | London | Paris | Piraeus | Seoul | Shanghai | Singapore | Yangon
Associated offices | Athens | Bucharest | Guangzhou | Jakarta
www.shlegal.com
www.airfinancejournal.com 51Legal survey 2020
Operating leases 25
25
Total number of eligible deals 634
C lifford Chance and K&L Gates were
neck and neck in the operating lease
market, while Bird & Bird came third. It was
20
18
● Score ● Number of deals
a big change from the previous year when
Clifford Chance had closed 40% more 12
transactions than K&L Gates.
Operating leases continue to be the 328
most popular financing solutions in the 300
market of new aircraft deliveries. 249 241
In this year’s legal survey, they 181
represented about 42% of all transaction
points, with a total of 634 deals versus 584
in 2019.
Europe continues to lead this category
with 279 transactions in 2019. Sale and Clifford Chance K&L Gates Bird & Bird White & Case Pillsbury
leaseback deals in Europe accounted for
Source: law firm submissions and AFJ Deal Tracker
23 deals of one or more aircraft.
The expectations in 2020 are not
that optimistic, despite some airlines “The global market for operating leases year. This is due to both Covid-19 and the
increasingly looking at unencumbered (sale and leaseback transactions or pure Max issue together with low oil prices,
assets as a way of raising liquidity to offset operating leases) for new or old aircraft which will see most carriers continuing to
the drop in revenues because of the (except those owned by airlines) will take use older technology for a bit longer,” says
Covid-19 crisis. a bit of a hit until at least the end of the Rajagopal.
Guaranteed financing Total number of eligible deals 23
T he number of guaranteed financing
transactions in 2019 – 23 – more than
doubled compared with the previous year.
5
Clifford Chance, Bird & Bird, Dentons 4
and Winston & Strawn were the main
participants in this market in 2019, with a
total of 19 transactions.
However, Clifford Chance and Winston
& Strawn ranked first and second,
respectively, when scores were added. ● Score ● Number of deals
Winston & Strawn worked on export
credit agency (ECA) deals for Aviation
Capital Group and LATAM last year. 78
2 5
“ECA-supported financing has historically 68
been counter cyclical and was a lifeline
to airlines during the last downturn, when 5
access to the commercial bank market 1
became difficult,” says Winston & Strawn’s
34 30
Moody.
“As a result of the current Covid-19 crisis, 20 20
I would very much expect ECA financing
to start to play a major role once again in
aircraft financing during the next few years,”
he adds. Clifford Chance Winston & Strawn Stephenson Bird & Bird Pillsbury Dentons
Harwood
Clifford Chance was mainly involved in
the development and implementation of Source: law firm submissions and AFJ Deal Tracker
insurance-guaranteed deals with French
tax lease under the Balthazar product for
Turkish Airlines and Ethiopian Airlines. risk insurance market to step in to provide loans provided by Santander as sole
“Changes to the Basel capital rules are 100% non-payment insurance products,” mandated lead arranger. It was the largest
accelerating trends for banks to seek to de- says William Glaister, partner and head aviation transaction since the European
risk on balance sheet assets through credit of Clifford Chance’s global asset finance ECAs returned to cover Airbus products.
insurance products. At the same time for group. Avianca, LATAM, Malaysia Airlines, Sun
various reasons, export credit insurance/ The main transaction in the market last Express Airlines and Air Senegal were also
guarantee coverage became less available, year involved Emirates Airline’s financing active last year in the ECA market, some
which prompted the commercial credit four Airbus A380s under Bpifrance-covered with refinancing deals.
52 Airfinance Journal July/August 2020Rising stars
Rising stars
Airfinance Journal recognises six of the most promising legal associates for 2019.
Over the past two years, Green is intelligent, hardworking and very
Russell Green has advised on a number of complex, responsive under pressure”. He is also
Senior associate, Hogan Lovells
high-profile matters including advising recommended in The Legal 500, 2020
London
Norwegian on the establishment of a joint for UK Transport Finance and Leasing,
venture with CCB Leasing (International) with a client noting he is “always able to
Corporation to finance, own and lease keep the client happy” and an “excellent
27 Airbus A320neo-family aircraft that communicator and deal manager”.
Norwegian has on order. Robert Fugard, Hogan Lovells’ head of
He also advised Norwegian on its asset finance, says: “Russell is a highly
recapitalisation. This project involved versatile, intellectually rigorous lawyer with
the restructuring of the majority of the an amazing ability to get to the heart of
company’s aircraft operating leases, the important issues in a deal quickly.”
including the conversion of $912 million of
rental obligations into shares or bonds, the
adjustment of lease rates, the conversion
of rentals until March 2021 into a “power-
by-the-hour” arrangement (matching Evgenia Erakhtina
rentals paid to actual utilisation of aircraft) Senior associate, Allen & Overy
and the early redelivery of certain aircraft. London
The recapitalisation enabled Norwegian
to achieve an 8% equity ratio and qualified
it to receive state aid from the Norwegian
government in the form of a $301 million
E vgenia Erakhtina is a senior associate in
the structured and asset finance group
of Allen & Overy.
term loan facility. Green also worked with She advises on some of the most
Russell is a highly the Scandinavian carrier on PDP financing innovative, complex and high-profile
with Aercap covering five A320neo structured and asset finance transactions.
versatile, intellectually aircraft. Her experience includes Covid-19
rigorous lawyer with an Other lead roles in Europe include
advising Icelandair on its PDP financing
debt finance and debt restructuring,
AFIC-supported finance, Islamic
amazing ability to get to and sale and leaseback transaction with finance, operating leasing, joint-
BOC Aviation for 11 737 Max aircraft, venture establishment, debt finance,
the heart of the important advising Deutsche Bank on the financing export finance, PDP finance, sovereign
issues in a deal quickly. of three ATR72-600 aircraft for Avation debt, portfolio transfers, portfolio and
on lease to Braathens. The transaction warehouse financing, tax leasing products
Robert Fugard, head of asset finance, marked the first “green financing” and a range of corporate and commercial
Hogan Lovell involving aircraft. matters.
Green also plays a leading role in the One of Erakhtina’s strengths is her
firm’s Africa finance practice. Over the past expertise in Islamic-based financing
year, he has acted for African financial transactions. She regularly acts for
R ussell Green is a senior associate in
the Hogan Lovells asset finance team
with a particular focus on aviation finance.
institutions such as Eastern and Southern
African Trade and Development Bank as
borrowers and Islamic banks on a variety
of aircraft transactions. Recent transactions
His aviation clients include airlines, leasing mezzanine lender in connection with the include advising a syndicate of Islamic
companies, funds and banks and he has Balthazar insurance-backed financing lenders on the Ijara financing of five A330
acted on a wide range of aviation finance with French tax lease of two A350-900 aircraft on lease to Kuwait Airways, and
products, including operating leases, sale aircraft for Ethiopian Airlines. He also DAE Capital on multiple Ijara and Murabaha
and leasebacks, enhanced equipment trust advised African Export-Import Bank on the transactions with regional Islamic banks.
certificates (EETC), Japanese operating repossession, settlement arrangements She has also advised DAE Capital on
lease with call options (Jolco), capital and subsequent sale of two ATR72-500s the PDP and post-delivery financing and
markets issuances, US and European previously operated by airlines in Angola leasing of five 787-9s on lease to Gulf Air,
export credit agency-supported financing and Ghana. First Abu Dhabi Bank on the financing of
and predelivery payment (PDP) financing. His range of expertise enabled him to one 787-10 aircraft and one 777F aircraft for
Green has been particularly active in advise engine manufacturer Rolls-Royce Etihad Airways.
transactions involving groundbreaking on arrangements arising out of Avianca’s Erakhtina’s largest transaction is the five
insurance-backed aircraft financing out-of-court restructuring plan, as well as different syndicated financing facilities,
solutions developed and launched to engine lessor Shannon Engine Support on totalling $3.5 billion, to International
market in the past couple of years. He arrangements with airlines including China Airfinance.
acted for Norwegian on a series of AFIC Southern Airlines and Sunwing. She recently completed a secondment
financings for Boeing 737 Max and 787-9 Green is ranked as an ‘Associate to with a top-tier aircraft lessor in Dublin,
models, and for the mezzanine lender on Watch’ for Aviation Finance in Chambers which has provided her with a first-hand
one of the first Balthazar financings issued and Partners’ Chambers UK 2020 perspective on how operating lessor clients
in the market. rankings, with a client commenting “he operate and their needs.
www.airfinancejournal.com 53Rising stars
She has also had several adviser roles
for AFIC insurer groups: for a French
Overseas LODEOM tax lease of two 787-9s
for Air Tahiti Nui; a BNP Paribas-arranged
and BNP Paribas/KfW and CaixaBank-
funded AFIC-supported French lease of
two new 787-9 aircraft delivered to Royal
Air Maroc; and a French tax lease financing
of one 787-9 aircraft and one 737 Max 8
aircraft for Royal Air Maroc. This was the
first AFIC-supported financing for Royal
Air Maroc and the first AFIC transaction
involving KfW and CaixaBank.
Her work with Royal Air Maroc extended
to the Jolco financing of two 737 Max 8
aircraft provided by SMBC.
In the lessor segment, Erakhtina has
worked with BNP Paribas, Credit Agricole,
ING Bank, National Australia Bank, Natixis,
Societe Generale, SMTB and Westpac on
a $700 million financing of a portfolio of
19 aircraft for CDB Aviation, as well as with
Evgenia is an expert PFA Asset Management on Nordic Aviation
at advising on complex Capital’s largest unsecured facility.
cross-border transactions
and her intelligence and
calmness under pressure Pete Buckley Pete has a broad
Senior associate, Clifford Chance
have allowed her to build London experience and has been
strong client relationships the lead associate on
across the market. P ete Buckley is a senior associate in
Clifford Chance’s global asset finance
group. He advises a wide range of clients
a significant number of
Paul Nelson, partner and global head of across the aviation sector, including complex and first-of-their-
aviation, Allen & Overy financiers, arrangers, insurance companies, kind transactions within
manufacturers, export credit agencies,
leasing companies and operators. the sector. Clients like his
Her fluent Russian has helped her to Buckley has worked on a wide range
develop strong client relationships with of financing structures including secured
commercial approach
operating lessors and airlines across the operating lease financings (full and limited and his ability to close
CIS region. She has advised VEB-Leasing recourse), direct airline financings, Balthazar
on the PDP and export credit agency- insurance-backed financings, export transactions efficiently
backed delivery financing of 20 new finance transactions, Jolco financings, PDP
A320-family aircraft for UTair Aviation, financings and structured capital market
and smoothly.
VEB-Leasing in connection with the $1.1 transactions, as well as acting for a wide
William Glaister, head of global asset
billion US Eximbank-supported financing variety of leasing companies on numerous
finance group, Clifford Chance
of 10 777-300ERs on lease to Aeroflot- aircraft portfolio sales.
Russian Airlines, as well as VTB Leasing on He has also worked on M&A transactions
US Eximbank-supported financing of 50 in the aviation sector and has experience
737-800/900 aircraft for Aeroflot-Russian advising operating lessors and financiers “Pete has a broad experience and has
Airlines. in relation to distressed airlines and their been the lead associate on a significant
Erakhtina has also supported Russian restructurings. number of complex and first-of-their-kind
and international operating lessors with Notably, he advised Airbus, Marsh transactions within the sector. Clients like
restructurings and repossessions involving Paris, a number of selected banks and his commercial approach and his ability to
Russian airlines. various insurance companies on the close transactions efficiently and smoothly;
Paul Nelson, Allen & Overy partner and development of the Balthazar credit risk he is pragmatic and steady in negotiations
global head of aviation, says: “Evgenia is an insurance product for new Airbus aircraft with the opposite side,” says William
expert at advising on complex cross-border financings. He has also advised the Insurer Glaister, head of Clifford Chance’s global
transactions and her intelligence and Underwriting Committee on all Balthazar asset finance group.
calmness under pressure have allowed her financing transactions completed as Buckley’s deal highlights include
to build strong client relationships across Airfinance Journal went to press. acting as lead associate for the syndicate
the market.” Buckley has spent time on secondment of insurers on the first-ever Balthazar
Her experiences include being the lead with Standard Chartered Bank where he insurance-backed financing, for five
associate advising financiers in a recent worked with their global aviation finance A321neo aircraft for Turkish Airlines with
£400 million ($500.3 million) financing for team in Dublin, gaining valuable insights financing provided by BNP Paribas utilising
Easyjet (Covid-19). from the operating lessor perspective. a French structured tax lease.
54 Airfinance Journal July/August 2020Rising stars
He recently advised on a Jolco Airlines after the acquisition. Two of the Leung notably advised Vietjet Air on two
refinancing for BNP Paribas for one 787 aircraft were acquired from ICBC Aviation landmark transactions: the purchase of 50
aircraft for KLM Royal Dutch Airlines. The Leasing entities, with the other acquired A321neos worth up to $6.5 billion and 100
transaction was completed in a matter from a GECAS entity. 737 Max aircraft valued at $12.7 billion.
of weeks during the Covid-19 crisis. MUL He has also worked on various Before joining Stephenson Harwood,
acted as equity arranger with junior innovative deals in the Korean market, Leung worked for one of Australia’s leading
financing provided by NTT Finance. including advising Meritz Securities on the energy companies where he advised on a
Buckley has had leading roles in $147 million acquisition and financing of variety of derivatives and trading matters.
transactions with financiers for the one 777 aircraft, on lease to Qatar Airways. Consequently, he is able to provide
restructuring of certain Jolco transactions The aircraft was purchased by a Cayman bespoke solutions to clients on their
for Avianca and its subsequent (and Islands-incorporated special purpose interest rate and foreign exchange risk.
ongoing) Chapter 11 proceedings, on vehicle, established by Meritz Securities Leung’s significant transactions include
Chorus Aviation’s first warehouse facility from an Irish leasing company. advising Transportation Partners on a
(provided by Deutsche Bank, Barclays refinancing of a total of 21 737-900ERs.
and Royal Bank of Canada) to finance The aircraft are on lease to Lion Air and
the acquisition of regional aircraft, and other related operating airlines including
financiers on a number of full recourse Batik Air, Thai Lion and Malindo Airways.
secured operating lease portfolio US-based global private investment
financings for Aercap and DAE Capital. firm Castlelake provided the financing.
Last year, he advised SMBC Aviation The transaction was executed within two
Capital on the aircraft purchases of its months, involved seven jurisdictions,
Global Aircraft Equipment Leasing (GAEL) staggered closings and multiple
fund. This followed work with the lessor on drawdowns.
three separate portfolio sales to Aircastle of He has led on a Malaysian carrier in
40 leased aircraft in aggregate. restructuring its leasing portfolio from
His lessor’s expertise spans to Avolon in a lessor-owned Labuan vehicle to an
connection with each of its 2018 Sapphire airline-owned Labuan vehicle, as well
I and 2020 Sapphire II operating lease as a Philippine airline on the Japanese
asset-backed securities (ABS) portfolio operating leases with call option financing
transactions, negotiation of a purchase of four new A321 aircraft.
agreement with Boeing for 10 737-800 Leung has also advised a French bank
aircraft for Standard Chartered, and the on the financing for a new A321 aircraft
financing of two A380 aircraft operated with Vietjet Air and two new A320s with
by Etihad Airways for Amedeo. The first Indigo as the operating lessee; a syndicate
A380 was financed with senior and junior of banks on the financing of two new A321
financing from NBAD and the second was aircraft to be operated by a Vietnamese
financed through an Islamic Ijara structure airline; and a German bank on the
with Dubai Islamic Bank. Japanese operating lease (Jol) financing
of an A320 aircraft and an A319 aircraft
operated by a Spanish carrier.
Clement Leung
Senior associate, Stephenson Harwood
Hong Kong Laura Lewis
Of particular value is Senior associate, Holland & Knight
C lement Leung is an experienced
structured finance lawyer in the
Leung’s ability to advise New York
on, negotiate and execute
aviation sector. He has advised banks,
lessors and airlines on various aspects of
aircraft financing and leasing transactions the hedging aspects
L aura Lewis is a senior level associate in
the New York office of Holland & Knight
and plays an essential role in the firm’s
involving multiple jurisdictions. He has aviation finance practice.
more than a decade’s experience advising
of aviation finance Lewis grew up in a small town in Finland
on derivative agreements, including ISDA transactions, which is just above the Arctic Circle and discovered
master agreements, catering to a wide her passion for the aviation world working
variety of products, including interest rates, unique to the industry. at the Finnish Civil Aviation Authority (now
foreign exchange, equities, credit and Finnish Transport and Communications
commodities. Agency) as a summer intern during law
Of particular value is Leung’s ability school.
to advise on, negotiate and execute The deal was financed using a She regularly counsels clients on some
the hedging aspects of aviation finance combination of senior, mezzanine and of the most complex transactions in the
transactions, which is unique to the junior funding. DVB Bank SE Singapore industry.
industry. He recently advised on hedging Branch and Australia and New Zealand Lewis advises leasing companies and
issues in Mirae Asset Securities (HK)’s $450 Banking Group provided senior financing financial institutions, as well as airlines,
million acquisition and financing of three for the aircraft, while the mezzanine and on the purchase, sale, lease, novation,
777 aircraft, on lease to China Airlines. The junior financing were provided by Korean interchanges, secured and unsecured
aircraft were purchased by three Cayman institutional investors. The transaction was financing (including PDP financing) and
Islands-incorporated special purpose the first arranged by Stellwagen’s office in securitisation of commercial and business
vehicles and remain on lease to China South Korea. aircraft, engines and parts.
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