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Conyers acted for the Issuer, MAPS 2019-1 Limited, in respect of Merx Aviation’s latest aviation asset-backed securitisation (“ABS”) comprising US$429 million in three tranches of Notes secured on a portfolio of 19 aircraft. This will be the second ABS transaction for Merx in the last twelve months.
The aircraft portfolio – which consists of seven Airbus A320s, one A321neo, one A330-200, one Boeing 737-900ER and nine 737-800s – has an initial value of US$516.9 million.
A portion of the Note proceeds will be used to refinance the RISE Ltd. (“RISE”) aircraft ABS transaction that closed in February 2014. The RISE transaction was initially issued and serviced by GE Capital Aviation Services (“GECAS”) with Merx as an equity investor. Over the past year, Merx replaced GECAS as servicer of RISE. Of the 19 aircraft in the MAPS 2019-1 Portfolio, 18 are currently owned by subsidiaries of the Issuer as part of the RISE securitization. The other asset is currently owned and serviced by Merx and will be acquired by the Issuer. Pursuant to the refinancing, RISE was renamed to MAPS 2019-1 Limited.
The transaction benefits from sufficient credit enhancement and liquidity as well as a dynamic structure that enables acceleration of principal payments on the Notes as required.
Director Neil Henderson and Associate Angela Atherden of Conyers’ Bermuda office advised on the matter.