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RBS Aviation Capital closes Airspeed securitization worth $1.09 billion
01 July 2007
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RBS Aviation Capital Airspeed
UBS
RBS Aviation Capital has successfully closed one of the most ambitious aircraft securitizations ever attempted, creating a new financing model for operating lessors.
At first Airspeed Limited looks similar to other aircraft lease securitizations, but the deal's real breakthrough is the payment structure, paying dividends to equity investors ahead of principal to bondholders. This allowed RBS and UBS, the deal's joint lead managers, to fully sell the $281 million equity portion. This means that Royal Bank of Scotland, RBS Aviation's parent, has fully transferred the ownership risks of the 36 aircraft.
UBS adapted the structure that it used for Gecas' Blade $600 million privately placed Blade Engine Securitization, which acquired 50 aircraft engines. Despite being larger, with...
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