Delta Airlines and Burnham Sterling close $450 million in private placements, reaching over $1 billion in total transactions
June 8th 2016: Greenwich, Connecticut-based Burnham Sterling & Co. LLC (Burnham Sterling), the financial advisor specializing in asset financing, announced that it closed a $450 million private placement for the world’s second largest airline, Delta Air Lines (NYSE: DAL).
BOC Aviation IPO could pave way for other Asia lessor IPOs
The take private of Avolon by Bohai Leasing earlier in 2016, shrunk the universe of publicly listed pure play lessors back but with the upcoming IPO of BOC Aviation, the visibility and appeal of aircraft assets to investors should improve. BOC Aviation, aircraft leasing unit of Bank of China, is arranging an IPO currently, which has attracted China’s sovereign wealth fund and Boeing as anchor investors.
Aercap completes 131 aircraft transactions in Q1, set to make first debt issuance of 2016
AerCap's highlights from its first quarter results include fleet utilisation rate of 99.3%; average remaining lease term of 6.1 years and a debt to equity ratio of 2.8x. In the quarter AerCap completed 131 aircraft transactions of which 36 were widebodies. The lessor has also just priced a $1 billion senior unsecured debt issuance, its first debt issuance of 2016.
Fitch assigns A rating to Boeing $1 billion note issuance
Fitch Ratings has assigned 'A' long-term ratings to Boeing Company's (BA) issuance of $1 billion senior unsecured notes. The notes will be issued in three parts, with maturities of 2023, 2026, and 2046, and the proceeds to be used for general corporate purposes.
IATA data shows passenger traffic up 7% in Q1 - but growth rate easing
Although global passenger traffic in the first quarter of 2016 started strongly, up 7.0 per cent on the same period a year earlier, or by about 6.0 per cent after accounting for the extra leap day, the growth in March (+5.3 per cent) was the slowest growth since June last year, according to IATA.
Afreximbank creates $20bn fund to support Africa's airlines
A sizeable new loan fund to help revive Africa's currency-exposed airlines has been established by the African Export-Import Bank, which is also exploring the possibility of creating a new regionally focused leasing platform. Aviation Finance reports on an address last week by Afreximbank Senior Manager, Samuel Mugoya in which he highlights some of the challenges faced by airlines on the continent and also some of the opportunities for growth, particularly in intra-regional services.
The May 5th edition of Aviation Finance is published
May 5th 2016: Aviation Finance latest issue: we speak with Citi's Tom Hollahan, Munawar Noorani and Louise O'Mara on the aircraft financing environment; New technology creating new routes - how Norwegian's plan to leverage new technology narrowbodies could shake up the transatlantic market; Analysis: the air freight market in 2016; Aircastle set up to acquire more mid life aircraft; FLY reports net income increase following accounting change; American and Norwegian set to issue EETCs; GOL's exchange offer; Avolon fleet size jumps, delivers first NEO to Indigo; Analysis: Blade downgraded.
FLY reports net income increase of more than $20 million as a result of SEC-mandated accounting policy changes
May 2nd 2016: SEC mandated changes to FLY Leasing's accounting policy for maintenance rights has seen the aircraft lessor restate its financial statements for fiscal years 2014 and 2013, and include it in its 2015 results. The changes see FLY report increased net income of $21.8 million per cent for the three years with no material impact on the company's reported cash flow for the periods covered.
Avolon's fleet increases as HKAC comes under its wing
April 29th 2016: Avolon's owned, managed and committed fleet has grown to 402 aircraft following the acquisition of the lessor by China's Bohai Capital. Avolon's fleet includes the fleet of Hong Kong Aviation Capital, a leasing business of Bohai Capital, that is now managed under the Avolon brand, as well as other aviation assets. The lessor has also reported a $3 billion war chest as it look to accelerate growth in 2016 and beyond..