Dubai, U.A.E., 2 February, 2017 – Falcon Aerospace Limited and Falcon Aerospace USA LLC (“Falcon 2017-1″ or “Borrowers”) will issue $410 million of asset-backed secured term Loans. The Borrowers expect to use the proceeds to purchase 21 in-production, narrow-body aircraft. Dubai Aerospace Enterprise (DAE) Ltd will act as servicer for the transaction.
Mr. Firoz Tarapore, Chief Executive Officer of DAE said: “We are extremely pleased with the very successful pricing of our inaugural ABS transaction. We welcome the opportunity to broaden our financing base and partner with sophisticated investors in the US capital markets. This transaction will help us achieve our goal of substantially increasing our footprint in the aircraft leasing space.”
Falcon 2017-1 will issue three tranches of asset-backed secured term loans: $315 million of 4.581% Class A Loans, $65 million of 6.30% Class B Loans, and $30 million of 8.353% Class C Loans. The Class A Loans will have an initial loan-to-adjusted base value (LTV) of 63.5% and are expected to be rated A(sf) by Standard & Poor’s Ratings Services (“S&P”) and Kroll Bond Rating Agency, Inc. (“KBRA”). The Class B Loans will have an initial LTV of 76.6% and are expected to be rated BBB(sf) by S&P and KBRA, and the Class C Loans will have an initial LTV of 82.6% and are expected to be rated BB(sf) by S&P and KBRA. Falcon Aerospace Limited will also issue an E Certificate in partial consideration for the sale of the aircraft.
Dubai Aerospace Enterprise (DAE) Ltd is a globally recognized and award-winning aerospace company headquartered in Dubai. More information can be found on the company’s web site at www.dubaiaerospace.com.
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