Conyers’ Bermuda office acted for the Issuers, START III Ltd. and START Holding III Ltd. in respect of an asset backed securitisation (ABS) comprising three tranches of notes secured on a portfolio of 20 in-production narrow-body aircraft with a total appraised value of approximately US$539 million. START III is financing its acquisition through its issuance of 144A/Reg. S debt and equity. Similar to the STARR 2018-1 transaction – the first aircraft portfolio purchase to include 144A tradeable equity and a dedicated asset manager for equity investors – and STARR 2019-1, an affiliate of Sculptor will serve as an asset manager and GECAS will continue to service the portfolio.
The notes comprise US$355.047 million A-rated A notes, with an initial loan-to-value (LTV) of 65.9%; US$56.570 million BBB-rated B notes with a 76.4% initial LTV; and US$34.72million C notes, rated BB, with an 82.8% initial LTV , with an e note tranche.
Director Neil Henderson and Counsel Angela Atherden of Conyers’ Bermuda office advised on this matter.