Canyon CTS – US$250.8m Asset Backed Securitization Deal
Canyon CTS is pleased to announce that Canyon Financial Services Limited (Canyon) has been appointed as Managing Agent in connection with the US$250.8 million Asset Backed Securitization (ABS) of a portfolio of 18 narrow bodied aircraft by Merlin Aviation Holdings DAC (the “Issuer”).
The transaction was backed by Avenue Capital Group and closed December 23, 2016. The aircraft will initially be leased to 17 commercial airlines located in 16 countries. The transaction was rated by Standard & Poor’s Financial Services and by Kroll Bond Rating Agency.
Alongside Canyon in our role of Managing Agent, ACG Aircraft Leasing Ireland Limited (a wholly owned subsidiary of Aviation Capital Group) will act as Servicer, Wilmington Trust is the Trustee, Security Trustee & Operating Bank, MUFG Securities are providing the Liquidity Facility, and Credit Suisse was the sole Structuring Agent and Global Coordinator for the transaction.
As Managing Agent, our role will be to provide corporate, administrative, accounting and cash management services to the Issuer, including monthly, quarterly and annual reporting to investors. This incorporates the reporting of cashflows, preparing underlying calculations and directing the Operating Bank to make distributions on each payment date in accordance with the waterfall. Additionally, Canyon is engaged to provide directorship services to the Issuer and the underlying subsidiaries as well as company secretarial services. Our role involves working collaboratively with multiple parties involved in the transaction.
The Canyon team was led by Nickola Murphy, Head of Asset Backed Finance at Canyon with support provided by Canyon’s aviation services team.
“We are delighted to be involved in this transaction assisting our client Avenue Capital Group in this ABS issuance. The Aircraft ABS division of Canyon CTS is a significant growth segment for us – the market is quite active at the moment. This ABS showcases the dedication of the team at Canyon CTS and our commitment and capability to deliver such a complex transaction”
Andrew Ryan, Managing Director, Canyon CTS.