Launch of a Multibillion Dollar Aircraft Leasing Fund
Across the duration of the project, ACC Aviation carried out several key activities:
- Financial Modeling. ACC Aviation developed a robust financial model, forecasting the fund’s economics, future aircraft values (calculating actual and synthetic values against lease return conditions and maintenance reserves), projected investor returns, lease management fees and fund expenses, debt amortization schedule and various financing ratios.
- Financing Support. Alongside the development of the financial model, ACC Aviation provided opinion letters confirming expected aircraft residual values at the end of the lease term, including aircraft redelivery conditions and forecasted maintenance reserve balances.
- Contract Advisory. Throughout the various transaction processes, ACC Aviation advised the client on negotiating various contracts associated with the deal, including aircraft lease agreements, engine power-by-the-hour agreements, OEM delivery concessions, side letters, and multiple BFE & SCN selection requirements.
The fund was launched and successfully capitalized in line with the client’s objectives. It has since expanded its portfolio to more than 50 new-generation narrowbody and widebody aircraft, receiving several awards for its innovative capital structure and leasing transactions.
ACC Aviation continues to support the client on various technical matters, including portfolio valuations and technical inspections.
Related case studies
ACC Aviation provided valuable assistance to a West African financial institution by helping them protect their interests and reduce financial exposure during an aircraft remarketing process. Through careful tailoring of the aircraft lease agreement to account for the unique technical condition of the aircraft, ACC Aviation was able to help the lender structure a lease that effectively transferred significant risk and capital expenditure to the lessee.
ACC Aviation's asset management team recently assisted an HNWI in aircraft remarketing and disposing of a Boeing 737-300 aircraft. The aircraft, awarded to the client through a court-ordered settlement, belonged to the now-defunct Tayaran Jet.
Over ten months, ACC Aviation successfully supported a consortium of lenders to prepare and fully liquidate the non-performing portfolio, recovering significant amounts of capital for the lenders.
ACC Aviation was engaged to advise the bank on how best to recover asset value whilst preserving social benefit and to support the implementation of the recommendations.