The offering consisted of one series of Notes: $569.540 million Series A Notes with an interest rate of 5.335%. The Series A Notes have an initial loan-to-value (“LTV”) of 69.0% and were rated A2 by Moody’s Investors Service (“Moody’s”) and A (sf) by Kroll Bond Rating Agency (“KBRA”). The Series A Notes have an initial expected maturity of 7 years and an initial expected weighted average life of 5.25 years based on the pricing case cash flow model. Affiliates of SKY acquired the E Certificates of SLAM.
“We are thrilled that the SLAM portfolio attracted a diverse, global group of investors, resulting in 2 x oversubscription. This broad distribution validates our ability to construct attractive portfolios with thoughtful structuring for our debt partners,” said Matthew Crawford, Co-Chief Investment Officer at SKY. “The success of this transaction underscores SKY’s investment approach, enabling us to continue providing efficient capital solutions to our airline customers and delivering high-quality portfolios to our investment partners.”
SKY expects to refinance its existing warehouse debt financing facility with proceeds from the SLAM transaction.
MUFG and Deutsche Bank acted as joint lead structuring agents and joint lead bookrunners, BofA Securities acted as joint structuring agent and joint lead bookrunner and BNP PARIBAS, Citigroup, Fifth Third Securities, Morgan Stanley, PNC Capital Markets LLC and SOCIETE GENERALEacted as joint bookrunners on the transaction. Natixis is the liquidity facility provider for the transaction. Vedder Price P.C. acted as legal counsel to SKY and Milbank LLP acted as legal counsel to the initial purchasers.
The Notes have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. This press release is not an offer of securities for sale in the United States. The Notes may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer of the Notes to the public in any member state of the European Economic Area.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor will there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About SKY Leasing
SKY Leasing (“SKY”) is an alternative investment manager dedicated to providing asset-focused capital solutions to airlines globally. With a global presence across five offices in San Francisco, Dublin, New York, Miami, and Singapore, SKY leverages a 30-year history of global aviation relationships, technical asset management expertise, and a disciplined investment framework, to originate unique investment opportunities with an emphasis on downside protection and stable cash flow. As of September 2024, the company manages 111 aircraft and $5 billion of aviation assets. For more information about SKY Leasing, visit www.skyleasing.com.
