Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of loans (the “Loans”) issued by Prop 2017-1 Limited.

Proceeds from the sale of the Loans will be used to purchase a fleet of 63 aircraft that are initially leased to 17 airlines located in 12 countries with an initial total value of approximately $545.1 million.

This transaction represents Elix Aviation Capital Limited’s (“Elix” or “the Company”) first sponsored securitization. Elix was founded in September 2013 by a team with deep regional aviation expertise and Oaktree Capital Management, which is currently Elix’s majority shareholder. As of December 31, 2016, the 63 aircraft included in the transaction represent approximately 82.9% (by number of aircraft) of Elix’s managed leased fleet.

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.

KBRA analyzed the transaction using the Aviation ABS Methodology published on October 26, 2016.

For complete details on the analysis, please see KBRA’s Presale Report, Prop 2017-1 Limited, which was published today at www.kbra.com.

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.

Series       Rating       Initial Loan Amount
A Loans       A (sf)       $300,000,000
B Loans       BBB (sf)       $57,000,000
C Loans       B (sf)       $54,000,000
 

Related Publications: (available at www.kbra.com)

  • ABS: Aviation ABS Methodology

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).