AP NEWS

KBRA Assigns Preliminary Ratings to Zephyrus Capital Aviation Partners 2018-1 Ltd

September 27, 2018

NEW YORK--(BUSINESS WIRE)--Sep 27, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to one loan (the “Loan”) issued by Zephyrus Capital Aviation Partners 2018-1 Ltd (“ZCAP Ireland”) and Zephyrus Capital Aviation Partners 2018-1 LLC (“ZCAP USA”, and together with ZCAP Ireland, “ZCAP 2018-1” or the “Borrowers”).

This is the inaugural securitization of aircraft managed by Zephyrus Aviation Capital (“Zephyrus” or the “Company”). ZCAP Ireland and ZCAP USA (the “Servicers”) will act as servicer for ZCAP 2018-1. KBRA notes that Virgo Investment Group LLC (“Virgo”) will own over 95% of the equity in ZCAP 2018-1 and is a majority owner of Zephyrus. Seabury Capital (“Seabury”) will be a minority investor in the equity and is also a minority owner of Zephyrus.

Proceeds from the sale of the Loan will be used, together with the equity proceeds to acquire 21 aircraft (the “Portfolio”) on lease to 19 lessees located in 14 countries. As of June 30, 2018, the initial weighted average aircraft age of the Portfolio is approximately 12.9 years with a weighted average remaining lease term of approximately 3.1 years. The Portfolio consists of 18 narrowbody aircraft (69.0% by value) and three widebody aircraft (31.0% by value). The Portfolio has an initial value of approximately $527.3 million.

The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Loans in the event of weak performance. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Related Publications: (available at )

CONNECT WITH KBRA

Twitter LinkedIn Download the iOS App YouTube

About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180927005879/en/

CONTACT: Kroll Bond Rating Agency

Analytical:

Alan Greenblatt, Director

(646) 731-2496

agreenblatt@kbra.com

or

Caitlin Colvin, Senior Director

(646) 731-2465

ccolvin@kbra.com

or

Michael Lepri, Associate Director

(646) 731-3389

mlepri@kbra.com

or

Chris Baffa, Associate Director

(646) 731-3312

cbaffa@kbra.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW YORK IRELAND

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 09/27/2018 03:42 PM/DISC: 09/27/2018 03:42 PM

http://www.businesswire.com/news/home/20180927005879/en

AP RADIO
Update hourly