15 November 2021 | Stratos announced it is the servicer of the new aircraft-backed ABS, SOLRR 2021-1 which closed today and raised USD$706.5m of securitised debt for a portfolio of 22 narrowbody aircraft leased to 10 airlines in 8 countries. The equity was provided by a fund managed by Sculptor Capital Management and press reports indicate that the debt achieved the tightest three-class pricing in the aircraft securitization market to date. Deutsche Bank was sole structuring agent and bookrunner and the deal featured widely distributed A, B and C notes. Moody’s rated the transaction.
The twenty-two aircraft were all acquired since the onset of the Covid crisis, all with leases in place and purchased via a combination of sale/leasebacks from various lessors. With over 40% of the lessees rated investment grade, a weighted average life of 4.2 years and most of the fleet in developed economies, the deal represents one of the highest quality aircraft portfolios introduced to the market.
This is the second ABS for Stratos and this fleet will increase Stratos’ portfolio under management to just under 60 aircraft and confirms its position as one of the fastest growing independent aircraft servicers.
Gary Fitzgerald, CEO of Stratos, said “We are thrilled with our involvement in another highly successful securitization and very excited to be working with the Sculptor team on this top-grade portfolio. We’d like to thank our many institutional clients who stepped up to the plate to deliver incredible economics in a market with particularly heavy supply in the run-up to thanksgiving. We really appreciate the excellent cooperation we received from our airline clients to facilitate the novation of the various aircraft”