Milbank advised JP Lease Products and Services and Stratos
Aircraft Management on a first-of-its-kind aircraft lease ABS
transaction.
The “JOL AIR 2019-1” deal, comprising 15 aircraft,
is the first aircraft lease ABS to include “Japanese
operating lease” (“JOL”) structures.
The deal is JP Lease’s first ABS, and Stratos’ first
ABS deal as servicer. It is comprised of a $456 million Class
A debt tranche (rated ‘A’ by Kroll Bond Rating Agency
(“KBRA") and Standard & Poor’s
(“S&P”), a $73.8 million Class B debt tranche
(rated at “BBB” by KBRA and S&P) and an unrated
$23.8 million Class C debt tranche. Equity in the transaction is
provided by Japanese investors via the JOL structure. Goldman Sachs
acted as lead structuring agent and lead left bookrunner, while
Deutsche Bank was joint structuring agent and joint lead
bookrunner. Natixis’ New York branch was the liquidity
facility provider.
